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Clampett, Inc., converted to an S corporation on January 1, 2019. At that time, Clampett, Inc., had cash ($52,000), inventory (FMV $72,000, basis $36,000), accounts receivable (FMV $52,000, basis $52,000), and equipment (FMV $72,000, basis $92,000). In 2020, Clampett, Inc., sells its entire inventory for $72,000 (basis $36,000). Assume the corporate tax rate is 21 percent. Clampett, Inc.'s taxable income in 2020 would have been $1,000,000 if it had been a C corporation. How much built-in gains tax does Clampett, Inc., pay in 2020?

Multiple Choice

• $13,020.

• $16,000.

• $0.

• $3,360.

• None of the choices are correct.