Mock Corporation Converts to S Corporation Status in 2012

question 31

Multiple Choice

Mock Corporation converts to S corporation status in 2012.Mock used the LIFO inventory method in 2011 and had a LIFO inventory of $435,000 (FIFO value of $550,000) on the date of the S election.How much tax must be added to the 2011 corporate tax liability, assuming that Mock is subject to a 35% tax rate.

• A)$0.
• B)$10,062.50.
• C)$40,250.
• D)$115,000.

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Definitions:

Situated Identity

The concept that an individual's identity and social position are shaped by the context or environment in which they are situated.

Identity Degradation

A response to repeated or glaring failures that destroys the offender’s current identity and transforms him or her into a “lower” social type.

Tactical Impression Management

The selective use of self-presentation tactics by a person who wishes to manipulate the impressions that others form of him or her.

Alter-Casting

A tactic in social interaction where one person imposes a role or identity onto another person, often to influence behavior in a desired direction.