Y corporation, a regular C corporation, elects S status on 1/1/X3, when its only asset is inventory with a FMV of $650,000, basis $450,000. Y corporation sells the inventory on 12/10/X4 for $850,000, resulting in income totaling $400,000. Reb is a 10 percent shareholder in Y corporation. Assume the tax rate is 21%. How much tax must Y co. pay? What will Reb report?