Trail Corporation is a C corporation that on February 1, Year 1, elected to be taxed as a calendaryear S corporation. On June 15, Year 1, Prail sold land with a basis of $100,000 for $200,000 cash. The fair market value of the land on February 1, Year 1, was $150,000. Prail had no other income or loss for the year and no carryovers from prior years.

What is Prail's tax?

a. $7,500

b. $10,500

c. $22,250

d. $21,00