$1.$ ABC Corp was a C corporation with two assets. On the date that it converted to an S corporation the assets had the following characteristics: One asset had a basis of $$50,000$ and a fair market value of $$750,000$ and another asset with a basis of $$500,000$ and a fair market value of $$300,000.4$ years and $10$ months after the date of the conversion the corporation disposed of the asset with the unrealized gain for $$2$ million. Will the corporation have to pay tax due to the sale? If so$,$ how much, assume a $21\%$ tax rate. How much income will pass through to the shareholders?