gAM a rue 48 e cengageNowv21 Online teac e Matulis Inc A C C

g:AM a?? rue 48 e, cengageNowv21 Online teac e Matulis, Inc., A C Corporation × acnow.comin/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAsignmentSession; ocator-assignment-takešinprogress X Calculator Exercise 22-15 (Algorithmic) (LO. 10) Matulis, Inc., a C corporation, owns a single asset with a basis of $472,000 and a fair market value of $1,132,800. Matulis elects s corporation status. Matulis holds a positive E & P balance. It elects S corporation status for 2018 and then sells the asset. Compute the corporate-level built-in gains tax that must be paid by Matulis 660,800 x ly Work Normally, an S corporation does not pay an income tax, because all items flow through to the shareholders. But an S corporation that was previously a C corporation may be required to pay a built-in gains tax, LIFO recapture tax, general business credit recapture, or passive investment income tax. Next (Pr Previous

Solution

Built in gains tax to be paid by C corporation

Gain = 1132800-472000 = 660800

Tax to be paid 660800*.35 =231280

I have just tried answer as per my knowledge.

Please let me know this is right or wrong

If it is wrong I will answer you in comment box thank you