Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. clampett, incorporated, converted to an s corporat

Clampett, Incorporated, converted to an S corporation on January 1, 2022. At that time, Clampett,...

70.2K

Verified Solution

Question

Accounting

Clampett, Incorporated, converted to an S corporation on January 1, 2022. At that time, Clampett, Incorporated, had cash ($46,000), inventory (FMV $66,000, basis $33,000), accounts receivable (FMV $46,000, basis $46,000), and equipment (FMV $66,000, basis $86,000). In 2023, Clampett, Incorporated, sells its entire inventory for $66,000 (basis $33,000). Assume the corporate tax rate is 21 percent. Clampett, Incorporated's taxable income in 2023 would have been $1,000,000 if it had been a C corporation. How much built in gains tax does Clampett, Incorporated, pay in 2023?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students