Matulis, Inc., a C corporation, owns a single asset with a basis of $353,600 and a fair market value of $848,640. Matulis elects S corporation status. Matulis holds a positive E & P balance. The entity elects S corporation status for 2022 and then sells the asset. Compute the corporate-level built-in gains tax that must be paid by Matulis. If required, round your answer to the nearest dollar.
Matulis, Inc., a C corporation, owns a single asset with a basis of $353,600 and a fair market value of $848,640. Matulis elects S corporation status. Matulis holds a positive E & P balance. The entity elects S corporation status for 2022 and then sells the asset. Compute the corporate-level built-in gains tax that must be paid by Matulis. If required, round your answer to the nearest dollar.
Chapter22: S Corporations
Section: Chapter Questions
Problem 15CE
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![Matulis, Inc., a C corporation, owns a single asset with a basis of $353,600 and a fair market value of $848,640. Matulis elects S
corporation status. Matulis holds a positive E & P balance. The entity elects S corporation status for 2022 and then sells the asset.
Compute the corporate-level built-in gains tax that must be paid by Matulis.
If required, round your answer to the nearest dollar.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5687fb83-fd7a-4439-8d0d-6db0a7688176%2F0ed68738-3f83-4610-b460-e0291ef1e727%2Faq7nimi_processed.png&w=3840&q=75)
Transcribed Image Text:Matulis, Inc., a C corporation, owns a single asset with a basis of $353,600 and a fair market value of $848,640. Matulis elects S
corporation status. Matulis holds a positive E & P balance. The entity elects S corporation status for 2022 and then sells the asset.
Compute the corporate-level built-in gains tax that must be paid by Matulis.
If required, round your answer to the nearest dollar.
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