On January 1, 2022, Daniels Corporation, a Regular (C) Corporation converted to an S Corporation. On the date of the conversion to an S Corporation had the following Assets: Cash - $200,000 Adjusted Basis and $200,000 Fair Market Value: Accounts Receivable - 5-0-Adiust.

Fair Market Value; Equipment - $110,000 Adjusted Basis and $100,000 Fair Market Value; Land - $1,800,000 Adjusted Basis and $2,500, During the year of 2022, Daniels Corporation collects all of the Accounts Receivable and sells the Land for $3,000,000. The Taxable Inc Corporation if it were a Regular (C) Corporation for the year of 2022 is $590,000. The Built-In Gain Tax (Section 1374 of the Internal R Corporation for the year of 2022 is:

• $245,500.
• $123,900.
• $206,500.
• $420,000.