Both Josh's salary and the distribution of profits are subject to income tax and SE tax. Mark for follow up Question 3 of 10. Miriam converted her sole proprietorship to an S corporation and transferred several assets to the corporation. The assets cost $12,000 and had an adjusted basis of $7,400. She also contributed $5,000 to the corporation's capital account. What is ner beginning basis in the S corporation? $7,400$12.000$12,400$17,000