Kristine Owns All of the Stock of a C Corporation

Multiple Choice

Kristine owns all of the stock of a C corporation which owns the following assets:

* Potential § 1245 recapture of $30,000.
** Straight-line depreciation was used.
Her adjusted basis for her stock is $270,000.Calculate Kristine's recognized gain or loss and classify it as capital or ordinary if she sells her stock for $470,000.

A) $200,000 ordinary income.
B) $200,000 capital gain.
C) $100,000 ordinary income and $100,000 capital gain.
D) $90,000 ordinary income and $110,000 capital gain.
E) None of the above.