Virginia Corporation is a calendar-year corporation. At the beginning of 2020, its election to be taxed as an S corporation became effective. Virginia Corp.’s balance sheet at the end of 2019 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation).

Asset	Adjusted basis	FMV
Cash	$20,000	$20,000
Accounts receivable	40,000	40,000
Inventory	90,000	200,000
Land	150,000	175,000
Totals	$300,000	$435,000

In 2020, Virginia Corp. reported business income of $50,000 (this would have been its taxable income if it were still a C corporation). What is Virginia’s built-in gains tax in each of the following alternative scenarios?

a. During 2020, Virginia Corp. sold inventory it owned at the beginning of the year for $100,000. The basis of the inventory sold was $55,000.

b. Assume the same facts as part (a), except Virginia Corp. had a net operating loss carryover of $24,000 from its time as a C corporation.

c. Assume that same facts as part (a), except that if Virginia Corp. were a C corporation, its taxable income would have been $1,500.