Yates Corporation Elects S Status,effective for Calendar Year 2013

question 135

Multiple Choice

Yates Corporation elects S status,effective for calendar year 2013.Yates' only asset has a basis of $50,200 and a fair market value of $110,400 as of January 1,2013.The asset is sold at the end of 2013 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.

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Definitions:

Neglected

Failing to care for properly or to give proper attention to.

Autonomy

The ability to make a knowledgeable and voluntary decision on one's own.

Well-Adjusted

Describes an individual who can cope adaptively with the demands of daily life and maintains positive relationships with others.

Obesity

A health issue defined by an overabundance of body fat, which poses a threat to well-being.