Delta Corporation (the Company) was organized as a corporation under the laws of Virginia on January 1, 2000. This was the original organization of the Company and there was not any property contributed other than cash. The Company elected to become an S corporation on January 1, 2006. At the time of the S corporation election, the Company had accumulated earnings and profits in excess of $500,000 and a built in gain of $200,000. The Company did not have any built in losses as of January 1, 2006.The built-in-gain relates to a piece of unimproved real estate (land) which had a cost basis of $50,000 and a FMV on January 1 of $250,000. This land was sold to an unrelated party on January 1, 2020 for $375,000. For the year ended December 31, 2020, the Company had taxable income of $1,000,000. The Company does not have any instalment income receivable.

Required 1. Calculate the Companys built in gains tax for the calendar year 2020.