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Alomar, a cash basis S corporation in Orlando, Florida, holds the following assets and liabilities on January 1, 2019, the date the S election is

Alomar, a cash basis S corporation in Orlando, Florida, holds the following assets and liabilities on January 1, 2019, the date the S election is made.

Adjusted Basis Fair Market Value

Cash $ 200,000 $ 200,000

Accounts receivable 0 125,000

Equipment 110,000 90,000

Land 1,600,000 2,500,000

Accounts payable 0 110,000

During the year, Alomar collects the accounts receivable and pays the accounts payable. The land is sold for $3 million, and the taxable income for the year is $990,000. Calculate any built-in gains tax.

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