McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

تمرين 25

Rivendell Corporation uses the accrual method of accounting and has the following assets as of the end of 2010.Rivendell converted to an S corporation on January 1, 2011.
a.What is Rivendell's net unrealized built-in gain at the time it converted to an S corporation?
b.Assuming the land was valued at $200,000, what would be Rivendell's 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 Rivendell's net unrealized gain at the time it converted to an S corporation?