Problem 12-47 (LO. 10) Whindy Corporation, an S corporation, reports a recognized built-in gain of $80,000 and a recognized built-in loss of $10,000 this year. Whindy holds an $8,000 unexpired NOL carryforward from a C corporation year. Whindy's ordinary income for the year is $65,000. Assume a corporate tax rate of 21%. Calculate any built-in gains tax. Feedback Check My Work Normally, an S corporation does not pay an income tax, because all items flow through to the shareholders. But an S corporation that was previously a C corporation may be required to pay a built-in gains tax. Without the built-in gains tax ( 1374), it would be possible to avoid the corporate double tax on a disposition of appreciated property by electing S corporation status