Tempe Corporation is a calendar-year corporation. At the beginning of 2022, its election to be taxed as an S corporation became effective. Tempe Corporation's balance sheet at the end of 2021 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation):

Tempe Corporation's business income for the year was $45,500 (this would have been its taxable income if it were a C corporation). During 2022, Tempe Corporation sold all of the inventory it owned at the beginning of the year for $254,000.

b. Assume the original facts, except that if Tempe Corporation were a C corporation, its taxable income would have been $9,200. What is its built-in gains tax in 2022?

c. Assume the original facts, except the land was valued at $162,000 instead of $131,000. What is Tempe Corporation's built-in gains tax in 2022?

\begin{tabular}{lrr} \multicolumn{1}{c}{ Asset } & Adjusted Basis & \multicolumn{1}{c}{ FMV } \\ Cash & $25,500 & $25,500 \\ Accounts receivable & 43,300 & 43,300 \\ Inventory & 182,000 & 233,000 \\ Land & 172,000 & 131,000 \\ Totals & $422,800 & $432,800 \\ \cline { 2 - 3 } & \end{tabular} \begin{tabular}{lrr} \multicolumn{1}{c}{ Asset } & Adjusted Basis & \multicolumn{1}{c}{ FMV } \\ Cash & $25,500 & $25,500 \\ Accounts receivable & 43,300 & 43,300 \\ Inventory & 182,000 & 233,000 \\ Land & 172,000 & 131,000 \\ Totals & $422,800 & $432,800 \\ \cline { 2 - 3 } & \end{tabular}