Virginia corporation is a calendar-year corporation. at the beginning of 2019, its election to be taxed as an s corporation became effective. virginia corp.’s balance sheet at the end of 2018 reflected the following assets (it did not have any earnings and profits from its prior years as a c corporation). adjusted asset basis fmv cash $ 20,750 $ 20,750 accounts receivable 40,900 40,900 inventory 91,650 203,150 land 156,000 181,600 totals $ 309,300 $ 446,400 in 2019, virginia corp. reported business income of $51,500 (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?
c. during 2019, virginia corp. sold inventory it owned at the beginning of the year for $101,950. the basis of the inventory sold was $56,350. also assume that instead of virginia corp. reporting business income of $51,500 as if it were a c corporation, its taxable income would have been $1,800.

Which of the following statements is true? a. financial investment refers to the creation and expansion of business enterprisesb. economic investment refers to the creation and expansion of business enterprisesc. economic investment refers to the purchase of assets such as stocks, bonds, and real estated. both economic and financial investment refer to the purchase of assets such as stocks, bonds, and real estate

True or false: on january 1, year one, the epstein corporation buys a plot of land with a four-story office building. the company believes the building is worth $1.9 million and has an estimated life of twenty years (with no anticipated residual value). the straight-line method is used. the land has an assessed value of $100,000. because the seller was interested in a quick sale, epstein was able to buy this land and building for $1.7 million. depreciation expense to be recognized in year one is $80,750.

Insurance companies have internal controls in place to protect assets, monitor the accuracy of accounting records and encourage operational efficiencies and adherence to policies. these internal controls are generally of two types: administrative controls and accounting controls. administrative controls are the policies and procedures that guide the daily actions of employees. accounting controls are the policies and procedures that delineate authorizations of financial transactions that are done, safeguard assets, and provide reports on the company’s financial status in a reliable and timely manner. internal controls should include both preventative and detective controls. the purpose of preventative controls is to stop problems and errors before they occur. detective controls identify problems after they have occurred. preventative controls are usually more effective at reducing problems, but they also tend to be more expensive. internal controls must be flexible to adjust for changes in laws and regulations in addition to adding new products or modifying current ones. companies must also do regular analyses to ensure that the benefits of implementing the controls are worth their costs. when concerned about paying unwarranted insurance claims which type of control would be useful?