MWC Is a C Corporation That Uses the Accrual Method

question 75

Essay

MWC is a C corporation that uses the accrual method of accounting. MWC made an S election, effective January, 1 of 2016. The following assets were owned by MWC on December 31, 2015. $$\begin{array} { | l | r | } \hline \text { Description } & \text { Amount } \\\hline \text { Consulting revenue } & \$ 99,000 \\\hline \text { Salary to owners } & ( 40,000 ) \\\hline \text { Employee wages } & ( 30,000 ) \\\hline \text { Depreciation expense } & ( 5,000 ) \\\hline \text { Municipal bond interest } & 6,000 \\\hline \text { Interest income } & 42,000 \\\hline \text { Dividend income } & 25,000 \\\hline \text { Overall net income } & \$ 97,000 \\\hline\end{array}$$ What is MWC's net unrealized built-in gain when it converts to an S corporation on January 1, 2016?

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Definitions:

Geriatric Patients

Individuals typically over the age of 65 who require specialized medical care focused on the unique health needs of older adults.

Aerobic Exercise

Physical activity that relies on the oxygenation of blood through the heart to improve the efficiency of the body’s cardiovascular system.

Healthcare Checkups

Regular medical examinations or assessments, often annual, to monitor an individual's general health or to screen for specific conditions.

Nutritional Intake

The amount and type of food and beverages consumed by an individual, critical for health and well-being.