P owns $100\%$ of the stock of S$,$ which owns $100\%$ of the stock of B$.$ S sells depreciable property with a basis of $$100,000$ to B for $$150,000.$ B depreciates the property using $5$ year straight line. Which of the following is true:

B takes a carryover basis of $$100,000,$ which is its corresponding item.

S recognizes $$10,000$ gain on the sale of the asset in each of $5$years. S$$s yearly intercompany item recognized is equal to the $$20,000$ recomputed corresponding item deduction minus the deduction of the $$30,000$ corresponding item. This negative item $($$$20,000$ minus $$30,000,$ each a deduction$)$ results in a gain to be recognized.

S recognizes $$0$ gain on the sale of the asset in each of $5$years. S recognizes $$50,000$ of gain when property is fully depreciated at the beginning of year $6$ after property is fully depreciated.

P can elect to recognize $$50,000$ of taxable income if election is made before the orignigal due date of the return.