A cash basis calendar year C corporation in Athens, Georgia has $100,000 of accounts receivable on the date of its conversion to an S corporation on Feb. 14. By the end of the year, $70,000 of these receivables are collected. Calculate any built-in gains tax, assuming that there is sufficient taxable income.

a. $0

b. $10,500

c. $24,500

d. $35,000

e. Some other amount