Worthy Corporation Elected to Be Taxed as an S Corporation

Worthy Corporation elected to be taxed as an S corporation on January 1,of last year,effective last year.It had previously been a C corporation.On the effective date of the S election,Worthy had land with a $70,000 basis and a $210,000 FMV.No net unrealized losses exist on the date of the S corporation election.The land is sold this year for $250,000.The tax result of the sale by Worthy is

A) no gain or loss recognized.
B) a Sec.1231 gain of $180,000,none of which is subject to the built-in gains tax.
C) a Sec.1231 gain of $180,000,all of which is subject to the built-in gains tax.
D) a gain of $140,000 subject to the built-in gains tax and passes though to shareholders,plus a $40,000 gain subject to on the regular S-corporation pass-through rules.