S- Corporation assignment #7
lar.roCritical Thinking: S-Corporation
Lockhart Corporation is a calendar-year corporation. At the beginning of 2013, its election to be taxed as an S corporation became effective. Lockhart Corp.'s balance sheet at the end of 2012 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation):
Asset | Adjusted Basis | FMV |
Cash | $35,000 | $35,000 |
Accounts receivable | 25,000 | 25,000 |
Inventory | 180,000 | 210,000 |
Land | 125,000 | 120,000 |
Totals | $365,000 | $390,000 |
Lockhart's business income for the year was $65,000 (this would have been its taxable income if it were a C corporation).
- During 2013, Lockhart sold all of the inventory it owned at the beginning of the year for $250,000. What is its built-in gains tax in 2013? Be sure to show your work.
- Assume the same facts as in part (1), except that if Lockhart were a C corporation, its taxable income would have been $17,000. What is its built-in gains tax in 2013? Be sure to show your work.
- Assume the original facts except the land was valued at $115,000 instead of $120,000. What is Lockhart's built-in gains tax in 2013? Be sure to show your work.
- 9 years ago
- 20
Answer(3)
Purchase the answer to view it
NOT RATED
- lockhart_corporation_solution7.docx
Purchase the answer to view it
NOT RATED
- lockhart_corporation_as_an_s-corporation.docx
Purchase the answer to view it
NOT RATED
- lockhart-corporation.docx
Bids(1)
other Questions(10)
- Please read before requesting to assist (Project Package)
- Report Plan
- accounting
- Assignment 1: LASA 2: Inappropriate Behavior ONLY FOR XOON
- Rosiek Corporation
- HIS 301 Week 4 Individual Assignment Reflections on the 1st Amendment
- CMGT 400 Week 5 Final Assignment; Kudler Fine Foods IT Security Report
- essay
- need english professor for my English homework
- if the average speed of a race car is 0.075 miles per second how long would it take the car...