Doom Corporation changed from a C corporation to an S corporation in 2017. For 2020, the corporation
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Doom Corporation changed from a C corporation to an S corporation in 2017. For 2020, the corporation has built-in gain of $40,000 and taxable income of $30,000. Determine the built-in gains tax imposed on the corporation.
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When a C corporation elects to become an S corporation it may be subject to a built in gains tax if the corporation has built in gains at the time of the S corporation election Built in gains tax is applicable when there s a recognized gain on the disposition of assets within a certain period after the S corporation election In this case the corporation has a built in gainView the full answer