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:

Self-Esteem

One’s subjective evaluation of their own worth, including beliefs about oneself as well as an emotional states such as triumph, despair, pride, and shame.

Culture

A set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group.

Social Norms

Unwritten rules that govern the behavior of people in a society.

Internal Attribution

The inference that a person is behaving in a certain way because of something about the person, such as attitude, character, or personality.