Clampett, Inc. converted to an S corporation on January 1, 2018. At that time, Clampett, Inc. had cash ($40,000), inventory (FMV $60,000, Basis $30,000), accounts receivable (FMV $40,000, Basis $40,000), and equipment (FMV $60,000, Basis $80,000). What is Clampett, Inc.'s built-in gain or loss on January 1, 2018?

Multiple Choice

• $30,000 net built-in gain.

• $10,000 net built-in gain.

• $0 net built-in gain.

• $20,000 net built-in loss.

• None of the choices are correct.