D. 1.3 million

Randy, Inc., a C corporation, elects S corporation status in 20X2. The corporation has the following as of the date of the election: Fair Market Value $ 300,000 Basis Cash Equipment Undeveloped land 300,000 500,000 1,000,000 $1,800,000 800,000 2,000,000 $3,100,000 Randy, Inc., liquidates in 20X2, distributing the assets to the corporation's only shareholder. The fair market value of the assets at liquidation is $3 million. What is the taxable 20X2 built-in gain? A. $300,000 B. $1 million C. $1.2 million