Yates Corporation Elects S Status, Effective for Calendar Year 2012

question 145

Multiple Choice

Yates Corporation elects S status, effective for calendar year 2012.Yates' only asset has a basis of $50,200 and a fair market value of $110,400 as of January 1, 2012.The asset is sold at the end of 2012 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:

Sexual Self-stimulation

A personal sexual activity where an individual stimulates their own body and sexual organs for sexual pleasure, commonly referred to as masturbation.

Sexual Outlet

Any means through which an individual expresses or satisfies sexual desires and needs, ranging from sexual activity with others to self-stimulation.

Bisexual Orientation

A sexual orientation where an individual is attracted to both male and female genders.

Communicate Well

entails effectively transmitting and receiving messages and information through verbal, non-verbal, written, and digital means.