Paul: \$5,700; Julie: \$570: Bill: $650. Mark for follow up Question 2 of 10. Josh is the sole shareholder of an S corporation. Each year, he draws a salary and receives a distribution of profits from the corporation. Which of the following is true? Josh's salary will be treated as self-employment income and must be reported on Schedule C. Josh only pays tax on the salary he receives. Josh's share of the profits will not be subject to social security or medicare taxes. 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