Dout of 3 points Until the end of year 0, Magic Carpets (MC) was a C corporation with a calendar year. At the beginning of year 1 it elected to be taxed as an S corporation MC uses the LIFO method to value its inventory. At the end of year 0 under the LIFO method, its inventory of rugs was valued at $150,000. Under the FIFO mohod, the rugs would have been valued at $190,000. How much LIFO recapture tax must MC pay? Magic Carpets regular taxable income in year 0 was $1,000,000