Built-in Corporation ("B") was formed in 2001 as a C corporation. The shareholders of B elected S corporation status effective as of January 1, 2016, when it had no Subchapter C earnings and profits and the following assets: Land adj. basis - $30,000, FMV $20,000 Building adj. basis - 10,000, FMV 35,000 Machinery adj. basis - 15,000, FMV 30,000 For purposes of this problem, disregard any cost recovery deductions that may be available to B. Consider the shareholder and corporate level tax consequences of the following alternative transactions:

(a) B sells the building for $50,000 in 2017; its taxable income for 2017 if it wear not an S corporation would be $75,000.

(b) Same as (a), above, except that B's taxable income for 2017 if it were not an S corporation would be $20,000.

(c) Same as (a), above, except that B also sells the machinery for $40,000 in 2018, when it would have substantial taxable income if it were not an S corporation.

(d) B trades the building for an apartment building in a tax-free 1031 exchange and then sells the apartment building for $50,000 in 2017, when it would have substantial taxable income if it were not an S corporation.

(e) B sells the building for $90,000 in 2022.