Yates Corporation Elects S Status,effective for Calendar Year 2010

question 69

Multiple Choice

Yates Corporation elects S status,effective for calendar year 2010.Yates' only asset has a basis of $50,200 and a fair market value of $110,400 as of January 1,2010.The asset is sold at the end of 2010 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.

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Definitions:

Linear Regression

A statistical method used to model the relationship between a dependent variable and one or more independent variables, assuming a linear relationship.

Normal Distribution

The normal distribution is a bell-shaped frequency distribution that is symmetric about the mean, describing how the values of a variable are dispersed or spread out.

Confidence Interval

A compilation of values, generated through statistical analysis of a sample, that is expected to include the value of a hidden population characteristic.

True Slope

In the context of linear regression, it refers to the actual slope of the line of best fit through data, indicating the true relationship between variables.