Mock Corporation Converts to S Corporation Status in 2018

question 84

Multiple Choice

Mock Corporation converts to S corporation status in 2018.Mock used the LIFO inventory method in 2017 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 Mock's 2017 corporate tax liability,assuming that Mock is subject to a 35% tax rate.

• A)$0
• B)$10,063
• C)$40,250
• D)$115,000
• E)Some other amount

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Definitions:

Teachers' Expectations

The beliefs or anticipations that educators hold about their students' abilities, which can significantly influence student performance and behavior in the classroom.

Powerful Effect

A significant impact or influence on a person, object, or situation.

Positive or Negative

refers to the nature of emotions, experiences, or outcomes as being either beneficial and desirable (positive) or harmful and undesirable (negative).

Pygmalion Effect

The phenomenon where higher expectations lead to an increase in performance; a form of self-fulfilling prophecy.