Clampett, Incorporated, converted to an S corporation on January 1, 2024. At that time, Clampett, Incorporated, had cash ($40,000), inventory (FMV $60,000, basis $30,000), accounts receivable (FMV $40,000, basis $40,000), and equipment (FMV $60,000, basis $80,000). In 2024, Clampett, Incorporated, sells its entire inventory for $60,000 (basis $30,000). Assume the corporate tax rate is 21 percent and that Clampett Incorporated's taxable income would have been a $50,000 loss in 2024 if it had been a C corporation. In 2025, Clampett, Incorporated's taxable income would have been $100,000 if it had been a C corporation. How much built-in gains tax does Clampett, Incorporated, pay in 2024? In 2025?

1. $10,500 in 2024; $0 in 2025
2. $2,100 in 2024; $0 in 2025
3. $0 in 2024; $0 in 2025
4. $0 in 2024; $10,500 in 2025
5. None of the choices are correct.