Clampett, Inc. converted to an S corporation on January 1, 2018. At that time, Clampett, Inc. had cash ($40,000), inventory (FMV

Question

2 years ago

11

Clampett, Inc. converted to an S corporation on January 1, 2018. At that time, Clampett, Inc. had cash ($40,000), inventory (FMV

$60,000, Basis $30,000), accounts receivable (FMV $40,000, Basis $40,000), and equipment (FMV $60,000, Basis $80,000). In 2019, Clampett, Inc. sells its entire inventory for $60,000 (Basis $30,000). Assuming the corporate tax rate is 21% and that Clampett, Inc. had a $20,000 net operating loss carryover from its prior C corporation years. How much built-in gains tax does Clampett, Inc. pay in 2019?
a.$10,500.
b.$10,000.
c.$2,100.
d.$0.

Business

1 answer:

Lubov Fominskaja [6] · Answer 1 · 2022-09-16T03:34:46+03:00

Lubov Fominskaja [6]2 years ago

7 0

Answer

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Explanation

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