Corporation uses the accrual method of accounting and has the following assets as of the end of 2019. Rivendell converted to an S corporation on January 1, 2020. 

Asset	Adjusted basis	FMV
Cash	$40,000	$40,000
Accounts receivable	30,000	30,000
Inventory	130,000	60,000
Land	100,000	125,000
Totals	$300,000	$255,000

a. What is Rivendell’s net unrealized built-in gain at the time it converted to an S corporation?

b. Assuming the land was valued at $200,000, what would be Rivendell’s net unrealized gain at the time it converted to an S corporation?

c. Assuming the land was valued at $125,000 but that the inventory was valued at $85,000, what would be Rivendell’s net unrealized gain at the time it converted to an S corporation?