Morton was the sole shareholder for PAX Trades, an S corporation, for the past 9 years. Morton is planning a semi-retirement and decided to sell some of his shares. On March 1, Year 10, Morton sold 25% of his shares to Mark and on August 31, Year 10, Morton transferred 25% of his shares to Mary. PAX had $400,000 in net income in Year 10. What amount of income from PAX should Morton report on his return for Year 10 (a non-leap year)
