Zhao Company Sold an Asset on the First Day of the Tax

Zhao Company sold an asset on the first day of the tax year for $500,000. Zhao's 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 adjustment, if any, should be made to Zhao's Federal taxable income in determining the correct
Taxable income for the typical state?

A) $0.
B) ($50,000) .
C) $50,000.
D) $150,000.