Alomar,a cash basis S corporation in Orlando,Florida,holds the following assets and liabilities on January 1,2016,the date the S election is made.

During the year,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 1,2016,the date the S election is made.
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During the year,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 1,2016,the date the S election is made.
​
  
During the year,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 the Following Assets