Zhao Company sold an asset on the first day of the tax year for $500,000. Zhaos Federal tax basis for the asset was $300,000. Because of differences in cost recovery schedules, the state regular-tax basis in the asset was $350,000. What modification, if any, should be made to Zhaos Federal taxable income in determining the correct taxable income for the typical state?

	a.	$150,000
	b.	($50,000)
	c.	$50,000
	d.	$0