Clampett, Incorporated, converted to an S corporation on January 1, 2022. At that time, Clampett, Incorporated, had cash ($31,000), inventory (FMV $51,000, basis $12,000), accounts receivable (FMV $31,000, basis $31,000), and equipment (FMV $51,000, basis $71,000). In 2023, Clampett, Incorporated, sells its entire inventory for $51,000 (basis $12,000). Assume the corporate tax rate is 21 percent. Clampett, Incorporated's taxable income in 2023 would have been $1,000,000 if it had been a C corporation. How much built-in gains tax does Clampett, Incorporated, pay in 2023?

Multiple Choice

$8,610

$19,000

$3,990

$0

None of the choices are correct.