C corporations that elect S corporation status and use the FIFO inventory method are subject to the FIFO recapture tax.

Name: C corporations that elect S corporation status and use the FIFO inventory method are subject to the FIFO recapture tax.
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Quizplus · Accepted Answer

S corporations that previously were C corporations and use the LIFO (Last-In, First-Out) inventory method are subject to the LIFO recapture tax, not FIFO (First-In, First-Out).

C Corporations That Elect S Corporation Status and Use the FIFO