Calculate the built-in gains tax

Reference no: EM13143896

A cash basis calendar year C corporation in Athens, Georgia, had $100,000 of accounts receivable on the date of its conversion to an S corporation on February 14. By the end of the year, $60,000 of these receivables had been collected. Calculate any built-in gains tax, assuming that there is sufficient taxable income.

a. $0.

b. $21,000.

c. $28,000.

d. $35,000.

Reference no: EM13143896

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