Required information [The following information applies to the questions displayed below.) Virginia Corporation is a calendar-year corporation. At the beginning of 2019, its election to be taxed as an S corporation became effective. Virginia Corp.'s balance sheet at the end of 2018 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation). Asset Cash Accounts receivable Inventory Land Adjusted Basis FMV $ 20,000 $ 20,000 40,000 40,000 90,000 200,000 150,000 175,000 $300,000 $435,000 Totals In 2019, Virginia Corp. reported business income of $50,000 (this would have been its taxable income if it were still a C corporation). What is Virginia's built-in gains tax in each of the following alternative scenarios? a. During 2019, Virginia Corp. sold inventory it owned at the beginning of the year for $100,000. The basis of the inventory sold was $55,000. Answer is complete but not entirely correct. Built-in gains tax 15,750 X