Yates Corporation elects S status, effective for calendar year 2013. Yates' only asset has a...
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Accounting
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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