A Corporation Owns Many Acres of Timber, Which It Acquired

A corporation owns many acres of timber, which it acquired three years ago, and which has a $120,000 basis. The timber was cut last year for use in the corporation's business. The FMV of the timber on the first day of last year was $270,000. The corporation made the appropriate election to treat the cutting as a sale or exchange. The timber is sold for $300,000 this year. The tax result this year is

A) recognition of capital gain of $30,000.
B) recognition of Sec. 1231 gain of $30,000.
C) no income recognized since all recognition occurs in the year of the cutting of the timber.
D) recognition of ordinary income of $30,000.