A Shareholder Sells His S Corporation Stock and Realizes a $500,000

A shareholder sells his S corporation stock and realizes a $500,000 gain.The stock had been held five years.Which of the following statements most completely describes the character of the gain?

A) A long-term capital gain taxed at the 15%/20% capital gains rate.If the corporation owns collectibles,gain attributable to those assets will be taxed at the 28% long-term capital gain rate.
B) Ordinary income to the extent of the shareholder's share of the business's unrealized receivables and appreciation on inventory,with the balance taxed at the 15%/20% capital gain rate.
C) The portion of the gain attributable to unrecaptured Sec.1250 gain taxed at 25%,with the balance taxed at the 15%/20% capital gain rate.
D) Both B and C apply to the gain from the sale of S corporation stock.