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Aubrey Corporation changes from a regular C corporation in 2014 to an S corporation as of the beginning of 2015. For 2015, the corporation has $40,000 of built-in gain and $45,000 in accounting income. Determine any corporate tax that may be imposed on Aubrey Corporation, and the amount to be reported by the sole shareholder.

Aubrey Corporation changes from a regular C corporation in 2014 to an S corporation as of the beginning of 2015. For 2015, the corporation has $40,000 of built-in gain and $45,000 in accounting income. Determine any corporate tax that may be imposed on Aubrey Corporation, and the amount to be reported by the sole shareholder.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Aubrey Corporation changes from a regular C corporation in 2014 to an S corporation as of the beginning of 2015. For 2015, the corporation has $40,000 of built-in gain and $45,000 in accounting income. Determine any corporate tax that may be imposed on Aubrey Corporation, and the amount to be reported by the sole shareholder.
Transcribed Image Text:Aubrey Corporation changes from a regular C corporation in 2014 to an S corporation as of the beginning of 2015. For 2015, the corporation has $40,000 of built-in gain and $45,000 in accounting income. Determine any corporate tax that may be imposed on Aubrey Corporation, and the amount to be reported by the sole shareholder.
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