Bundy, Inc. operated for several years as a C corporation but has no earnings and profits. Bundy elects to be an S-corporation effective January 1, 20x1. On 1/1/x1, Bundy held only one asset: land with a fair market value of $200,000 and a basis of $100,000. On May 10, 20x3, Bundy sells the land for $230,000. Bundy's taxable income (calculated as if it were a C corp) would be $500,000 for 20x3. Bundy will have to pay a tax on this sale of: A. $0 B. $21,000 C. $27,300 D. $105,000