Clampett, Inc. converted to an S corporation on January 1, 2017. 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 2018, Clampett, Inc. sells its entire inventory for $72,000 (Basis $36,000). Assuming the corporate tax rate is 35%. Clampett, Inc.'s taxable income in 2018 would have been $1,000,000 if it had been a C corporation. How much built-in gains tax does Clampett, Inc. pay in 2018?

1) 5,600

2) 0

3) 12,600

4) 16,000

5) None of the choices are correct