Saved Bookmarks
| 1. |
Eva Corporation was a C Corporation from January 1, 2009 through December 31 , 2019 . On January 1, 2020 , Eva Corporation made an S Corp election. On December 31 , 2019 , Eva Corporation had the following assets . Asset FMV Tax BasisCash $100,000 $100,000Inventory 900,000 600,000Building 1,000,000 300,000Total $2,000,000 $1,000,000During 2020 , Eva Corporation sold the inventory on hand at December 31, 2019 for $1,200,000. Also during 2020, Eva Corporation purchased inventory at a cost of $1,000,000. This inventory was sold in 2020 for $2,000,000. What amount of Built in Gains Tax must Eva Corporation pay in 2020?A.$0B.$126,000C.$320,000D.$63,000 |
| Answer» | |