California 540

Ester purchased an office building for $300,000 during the tax year. She negotiated the deal with Albert, a California resident. He works for Pacific, Inc., a registered corporation based in Washington State, who owned the building. The owners basis in the building plus selling costs totaled $220,000. Ester will use the Optional Gain on Sale Election. How much is she required to withhold from the seller on Form 593?

a) $10,000 b) $11,040 c) $ 7,072 d) $ 9,840