Author Question: Worthy Corporation elected to be taxed as an S corporation on January 1, of last year, effective ... (Read 57 times)

elizabeth18 · **on:** Sep 13, 2020

Worthy Corporation elected to be taxed as an S corporation on January 1, of last year, effective last year. It had previously been a C corporation. On the effective date of the S election, Worthy had land with a $70,000 basis and a $210,000 FMV. No net unrealized losses exist on the date of the S corporation election. The land is sold this year for $250,000. The tax result of the sale by Worthy is
◦ no gain or loss recognized.
◦ a gain of $180,000, none of which is subject to the built-in gains tax.
◦ a gain of $180,000, all of which is subject to the built-in gains tax.
◦ a gain of $140,000 subject to the built-in gains tax and passes though to shareholders, plus a $40,000 gain subject to on the regular S-corporation pass-through rules.

spencer.martell · **Reply #1 on:** Sep 13, 2020

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 39% of students answer this correctly