Multiple Choice
Yates Corporation elects S status, effective for calendar year 2011. Yates' only asset has a basis of $50,200 and a fair market value of $110,400 as of January 1, 2011. The asset is sold at the end of 2011 for $130,800. What amount must Mark Farris, a 60% owner and subject to a 15% income tax rate, pay, if any?
A) $5,358.
B) $12,642.
C) $21,070.
D) $35,718.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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