Question $27$:

On January $1,2024,$ Daniels Corporation, a Regular $($C$)$ Corporation converted to an S Corporation. On the date of the conversion to an S Corporation, Daniels Corporation had the following Assets:

Cash $-$ $$200,000$ Adjusted Basis and $$200,000$ Fair Market Value;

Accounts Receivable $-$ $$0$ Adjusted Basis and $$105,000$ Fair Market Value;

Equipment $-$ $$110,000$ Adjusted Basis and $$100,000$ Fair Market Value;

Land $-$ $$1,800,000$ Adjusted Basis and $$2,500,000$ Fair Market Value.

During the year of $2024,$ Daniels Corporation collects all of the Accounts Receivable and sells the Land for $$3,000,000.$ The Taxable Income of Daniels Corporation if it were a Regular $($C$)$ Corporation for the year of $2024$ is $$590,000.$ The Built$-$in Gain Tax $($Section $1374$ of the Internal Revenue Code$)$ of Daniels Corporation for the year of $2024$ is:

A$.$ $$123,900$

B$.$ $$245,850$

C$.$ $$204,500$

D$.$ $$420,000$