Required information Problem 22-82 (LO 22-6) (Static) [The following information applies to the questions displayed...
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Required information Problem 22-82 (LO 22-6) (Static) [The following information applies to the questions displayed below.] Until the end of year 0 , Magic Carpets (MC) was a C corporation with a calendar-year-end. At the beginning of year 1 , it elected to be taxed as an S corporation. MC uses the LIFO method to value its inventory. At the end of year 0 , under the LIFO method, its inventory of rugs was valued at $150,000. Under the FIFO method, the rugs would have been valued at $170,000. How much LIFO recapture tax must MC pay, and what is the due date of the first payment under the following alternative scenarios? Problem 22-82 Part a (Static) a. MC's regular taxable income in year 0 was $65,000. b. MC's regular taxable income in year 0 was $200,000
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Required information Problem 22-82 (LO 22-6) (Static) [The following information applies to the questions displayed below.] Until the end of year 0 , Magic Carpets (MC) was a C corporation with a calendar-year-end. At the beginning of year 1 , it elected to be taxed as an S corporation. MC uses the LIFO method to value its inventory. At the end of year 0 , under the LIFO method, its inventory of rugs was valued at $150,000. Under the FIFO method, the rugs would have been valued at $170,000. How much LIFO recapture tax must MC pay, and what is the due date of the first payment under the following alternative scenarios? Problem 22-82 Part a (Static) a. MC's regular taxable income in year 0 was $65,000. b. MC's regular taxable income in year 0 was $200,000 