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Rivendell Corporation uses the accrual method of accounting and has the following assets as of...

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Accounting

Rivendell Corporation uses the accrual method of accounting and has the following assets as of the end of 2014. Rivendell converted to an S corporation on January 1, 2015.

Asset Adjusted Basis FMV
Cash $ 40,000 $ 40,000
Accounts receivable 30,000 30,000
Inventory 130,000 60,000
Land 100,000 125,000
Totals $ 300,000 $ 255,000

a.

What is Rivendells net unrealized built-in gain at the time it converted to an S corporation? (Leave no answer blank. Enter zero if applicable.)

b.

Assuming the land was valued at $200,000, what would be Rivendells net unrealized gain at the time it converted to an S corporation?

c.

Assuming the original land value but that the inventory was valued at $85,000, what would be Rivendells net unrealized gain at the time it converted to an S corporation? (Leave no answer blank. Enter zero if applicable.)

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