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
Q100: Samantha owned 1,000 shares in Evita, Inc.,
Q101: Which of these tax provisions does not
Q101: Which tax provision does not apply to
Q102: An S corporation is limited to _
Q104: An S corporation must own _% of
Q107: A(n) _ alien cannot own stock in
Q108: S corporation income is taxed at the
Q109: To make a valid S election, the
Q109: For Federal income tax purposes, taxation of
Q110: Lott Corporation in Macon, Georgia converts to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents