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 $150,000 basis for depletion. The timber is cut during the current year for use in the corporation's business. The FMV of the timber on the first day of the current year is $280,000. If the corporation makes the appropriate election, the tax result is

A) recognition of a gain if the timber is later sold with the gain equal to the sales price less $280,000 (FMV on the first day of the year of the cutting) .
B) recognition of a gain at the time of sale if the timber is later sold with the gain equal to the sales price less the basis in the timber.
C) recognition of a Sec. 1231 gain of $130,000.
D) no recognition of gain or loss since the timber is used in the business.