Alomar, a cash basis S corporation in Orlando, Florida, holds the following assets and liabilities on January 1, 2014, the date the S election is made.
During 2014, Alomar collects the accounts receivable and pays the accounts payable. The land is sold for $3 million, and the taxable income for the year is $590,000. Calculate any built-in gains tax.

Question

Alomar, a cash basis S corporation in Orlando, Florida, holds the following assets and liabilities on January 1, 2014, the date the S election is made.
  During 2014, Alomar collects the accounts receivable and pays the accounts payable. The land is sold for $3 million, and the taxable income for the year is $590,000. Calculate any built-in gains tax.

Quizplus · Accepted Answer

The Answer of Alomar, a cash basis S corporation in Orlando, Florida, holds the following assets and liabilities on January 1, 2014, the date the S election is made.
  During 2014, Alomar collects the accounts receivable and pays the accounts payable. The land is sold for $3 million, and the taxable income for the year is $590,000. Calculate any built-in gains tax.

Alomar, a Cash Basis S Corporation in Orlando, Florida, Holds