Apple, Inc. a cash basis S corporation in Orange, Texas, formerly was a C corporation. Apple has the following assets and liabilities on January 1, 2010, the date the S election is made:

	Adjusted Basis	Fair Market Value
Cash	$200,000	$200,000
Accounts receivable	-0-	$105,000
Equipment	$110,000	$100,000
Land	$1,800,000	$2,500,000
Accounts payable	-0-	$110,000

During 2010, Apple collects the accounts receivable and pays the accounts payable. The land is sold for $3 million, and taxable income for the year is $590,000. What is Apple's built-in gains tax?

A $0 B $206,500 C $590,000 D $695,000 E None of the above