Student/PlayerH orkld 48126862 Taxation - ACC208 counting Homework: Test Chapter
ID: 2532906 • Letter: S
Question
Student/PlayerH orkld 48126862 Taxation - ACC208 counting Homework: Test Chapter 11 (S-Corporations) Score: 0 of 1 pt PC: 11-35 (similar to) 3 of 5 (1 complete) HW Score: 7.69%, 0.38 of 5 pts ork /Test Question Help Delta Corporation formed 15 years ago. In its first year, it elected to useDuring the current year, Delta reports taxable income of $350,000 the cash method of accounting and adopted a calendar year as its taxClick the icon to view additional information) year. It made an S election on August 15 of last year, effective for Delta's current tax year. At the beginning of the current year, Delta had assets with Requirement a $650,000 FMV and a $130,000 adjusted basis. What is the amount of Delta's buill-in gains tax liability? Begin by computing Delta's recognized buit-in gains. (Use parentheses or a minus sign for negative a mounts) Recognized built-in gains Choose from any list or enter any number in the input fields and then click Check Answer Clear All part remainingExplanation / Answer
FMV of Assets $650,000 Less: Adjusted basis of assets $130,000 Recognized built-in gains $520,000 As the built-in gains exceed the Net income, all of it would be taxed