K year had had been a corporation since its inception in 2003. The corporation has the following operating results during the current year View the operating results The adjusted basis and FMV of capital assets held on January 1 and sold during the current year were $200,000 and $270,000, respectively, as of January 1 of the year in which the corporation's S election became effective. (Assume the current year is 2022. The corporate tax rate on built-in gains is 21%) Read the requirements MO Requirement a. Is Tau Corporation subject to the built-in gains tax under Sec. 1374? Explain. Tau Corporation subject to the built-in gains tax under Sec 1374 because gain if the assets with a built-in gain sold within the recognition period the effective date of the S election. The corporation