Virginia Corporation is a calendar-year corporation. At the beginning of 2023, its election to be taxed as an S corporation became effective. Virginia Corporation's balance sheet at the end of 2022 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation). Asset Adjusted Basis FMV Cash $ 25,250 $ 25,250 Accounts receivable 46,300 46,300 Inventory 101,550 222,050 Land 192,000 221,200 Totals $ 365,100 $ 514,800 In 2023, Virginia Corporation reported business income of $60,500 (this would have been its taxable income if it were still a C corporation). What is Virginia's built-in gains tax in each of the following alternative scenarios? During 2023, Virginia Corporation sold inventory it owned at the beginning of the year for $113,650. Assume the original facts except Virginia Corporation is a C corporation, and its taxable income was $3,600. The built-in gains tax is $______
Virginia Corporation is a calendar-year corporation. At the beginning of 2023, its election to be taxed as an S corporation became effective. Virginia Corporation's
| Asset | Adjusted Basis | FMV |
|---|---|---|
| Cash | $ 25,250 | $ 25,250 |
| 46,300 | 46,300 | |
| Inventory | 101,550 | 222,050 |
| Land | 192,000 | 221,200 |
| Totals | $ 365,100 | $ 514,800 |
In 2023, Virginia Corporation reported business income of $60,500 (this would have been its taxable income if it were still a C corporation).
What is Virginia's built-in gains tax in each of the following alternative scenarios?
During 2023, Virginia Corporation sold inventory it owned at the beginning of the year for $113,650. Assume the original facts except Virginia Corporation is a C corporation, and its taxable income was $3,600.
The built-in gains tax is $______
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