ed rences Required Information. [The following information applies to the questions displayed below] Tempe Corporation is a calendar-year corporation. At the beginning of 2022, its election to be taxed as an S corporation became effective. Tempe Corporation's balance sheet at the end of 2021 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation) Asset Cash Accounts receivable Inventory Land Totals Adjusted Basis $ 26,500 43,000 186,000 176,000 $ 432,400 Built-in gains tax FMV $ 26,500 43,900 219,000 133,000 $442,400 Tempe Corporation's business income for the year was $46,500 (this would have been its taxable income if it were a C corporation). During 2022. Tempe Corporation sold all of the inventory it owned at the beginning of the year for $262.000. b. Assume the original facts, except that if Tempe Corporation were a C corporation, its taxable income would have been $9,600. What is its built-in gains tax in 2022?
ed rences Required Information. [The following information applies to the questions displayed below] Tempe Corporation is a calendar-year corporation. At the beginning of 2022, its election to be taxed as an S corporation became effective. Tempe Corporation's balance sheet at the end of 2021 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation) Asset Cash Accounts receivable Inventory Land Totals Adjusted Basis $ 26,500 43,000 186,000 176,000 $ 432,400 Built-in gains tax FMV $ 26,500 43,900 219,000 133,000 $442,400 Tempe Corporation's business income for the year was $46,500 (this would have been its taxable income if it were a C corporation). During 2022. Tempe Corporation sold all of the inventory it owned at the beginning of the year for $262.000. b. Assume the original facts, except that if Tempe Corporation were a C corporation, its taxable income would have been $9,600. What is its built-in gains tax in 2022?
Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations
Section: Chapter Questions
Problem 35P
Related questions
Question
D1.
![ed
rences
Required Information
[The following information applies to the questions displayed below]
Tempe Corporation is a calendar-year corporation. At the beginning of 2022, its election to be taxed as an S corporation
became effective. Tempe Corporation's balance sheet at the end of 2021 reflected the following assets (it did not have any
earnings and profits from its prior years as a C corporation)
Asset
Cash
Accounts receivable
Inventory
Land
Totals
Adjusted Basis
$ 26,500
43,000
186,000
176,000
$ 432,400
Built-in gains tax
FMV
$26,500
43,900
239,000
133,000
$442,400
Tempe Corporation's business income for the year was $46,500 (this would have been its taxable income if it were a C
corporation).
During 2022. Tempe Corporation sold all of the inventory it owned at the beginning of the year for $262.000.
b. Assume the original facts, except that if Tempe Corporation were a C corporation, its taxable income would have been $9,600. What
is its built-in gains tax in 2022?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F644cf43a-ea1d-40a8-89e2-17a7f7fe81cb%2F1a774d32-ba62-4474-bf96-4c123ae441e4%2Fmi167on_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ed
rences
Required Information
[The following information applies to the questions displayed below]
Tempe Corporation is a calendar-year corporation. At the beginning of 2022, its election to be taxed as an S corporation
became effective. Tempe Corporation's balance sheet at the end of 2021 reflected the following assets (it did not have any
earnings and profits from its prior years as a C corporation)
Asset
Cash
Accounts receivable
Inventory
Land
Totals
Adjusted Basis
$ 26,500
43,000
186,000
176,000
$ 432,400
Built-in gains tax
FMV
$26,500
43,900
239,000
133,000
$442,400
Tempe Corporation's business income for the year was $46,500 (this would have been its taxable income if it were a C
corporation).
During 2022. Tempe Corporation sold all of the inventory it owned at the beginning of the year for $262.000.
b. Assume the original facts, except that if Tempe Corporation were a C corporation, its taxable income would have been $9,600. What
is its built-in gains tax in 2022?
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