Webster, Inc., a corporation that had been in existence since $2012,$ elected Subchapter S status on March $3,2021.$ The election did not specify a date for the conversion from C Corp. to S Corp. status. At the time of its election Webster, Inc. had three assets. Asset #$1$ had been acquired in $2017$ and had an adjusted basis of $$500,000$ and a FMV at the time of the Subchapter S election equal to $$800,000.$ In $2018,$ Webster, Inc. acquired Asset #$2$ and Asset #$3$ and had adjusted basis equal to $$450,000$ and $$700,000,$ respectively. The FMV of these two assets were $$300,000$ and $$900,000$ at the time of the Subchapter S election. On August $18,2022,$ Webster, Inc. sold Asset #$3$ for $$1,175,000.$

Assuming that the tax rate on a C Corp. was equal to $21$ percent in $2022,$ how much tax, if any, must Webster, Inc. pay as a result of its sale of Asset #$3?$ Explain your answer.

How much gain must Anna, the sole shareholder of Webster, include in her $2022$ tax return? Explain your answer.