X Corp., a regular C corporation, elects S status on 9/7/x6, when its only asset is a capital asset with a FMV of $500,000, basis $200,000.

X Corp. sells the capital asset on 10/16/x7 for $850,000, resulting in a capital gain of $650,000.

A is a 40% shareholder in X Corp.

Assume the tax rate is 21%.

48.

In 20x7, X Corp. incurs a tax of

In 20x7, X Corp. incurs a tax of

$136,500.

None of these.

$63,000.

0.

49.

In 20x7, as a result of the sale, A will report

In 20x7, as a result of the sale, A will report

$260,000 capital gain and $68,250 ordinary loss.

None of these.

$260,000 capital gain and $25,200 ordinary loss.

$260,000 capital gain and $68,250 capital loss.

$260,000 capital gain and $25,200 capital loss.