A Cash Basis Calendar Year C Corporation Reports $100,000 of Accounts

question 4

Multiple Choice

A cash basis calendar year C corporation reports $100,000 of accounts receivable on the date of its conversion to S status on February 14. By the end of the year, $60,000 of these receivables are collected. Calculate any built-in gains tax, assuming that there is sufficient taxable income.

• A) $0
• B) $12,600
• C) $21,000
• D) $35,000

---

Definitions:

Social Emotional Skills

Competencies in managing emotions, establishing positive relationships, and making responsible decisions.

Empowering

Providing the resources, confidence, and authority to people so they can control and improve their own lives.

Overpowering

Exerting control or influence over someone or something to an excessive degree, often overwhelming or subduing.

Conflict Resolution

The process of resolving disputes or disagreements between parties in a peaceful and effective manner.