3. K Corporation is 100% owned by Seller, who has a basis in her stock of $10,000. Corporation's sole asset is a waterbed factory worth $100,000 (basis $30,000). If Buyer purchases all the stock of K Corporation for $100.000, Buyer will own a corporation that holds a waterbed factory with a basis in the factory of $30,000, much less than the cost to Buyer. If Buyer is a corporation, a $ 338 election could be made to obtain a step-up in basis to $100,000 for the factory. The result would be A. A deemed sale of the factory and a tax on a gain of $70,000 ($100,000 - $30,000 basis) B. A tax on the gain of $90,000 ($100,000 - $10,000 basis) C. No tax, as basis would be carried over from the subsidiary corporation D. None of the above