20Clampett, Inc. converted to an S corporation on January 1, 2018. At that time, Clampett, Inc. had cash ($31,000), inventory (FMV $51,000, Basis $12,000), accounts receivable (FMV $31,000, Basis $31,000), and equipment (FMV $51,000, Basis $71,000). In 2019, Clampett, Inc. sells its entire inventory for $51,000 (Basis $12,000). Assuming the corporate tax rate is 21%. Clampett, Inc.'s taxable income in 2019 would have been $1,000,000 if it had been a C corporation. How much built-in gains tax does Clampett, Inc. pay in 2019?

Multiple Choice

• $2,520.

• $19,000.

• $3,990.

• $0.

• None of the choices are correct.