Virginia Corporation is a calendar-year corporation. At the beginning of 2017, its election to be taxed as an S corporation became effective. Virginia Corp.s balance sheet at the end of 2016 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation).

	Adjusted
Asset	Basis			FMV
Cash	$	20,500		$	20,500
Accounts receivable		40,600			40,600
Inventory		91,100			202,100
Land		154,000			179,400
Totals	$	306,200		$	442,600

In 2017, Virginia reported business income of $51,000 (this would have been its taxable income if it were still a C corporation).

What is Virginias built-in gains tax in each of the following alternative scenarios?

a. During 2017, Virginia sold inventory it owned at the beginning of the year for $101,300. The basis of the inventory sold was $55,900.

b. During 2017, Virginia sold inventory it owned at the beginning of the year for $101,300. The basis of the inventory sold was $55,900. Also, assume Virginia had a net operating loss carryover of $24,400 from its time as a C corporation.

c. During 2017, Virginia sold inventory it owned at the beginning of the year for $101,300. The basis of the inventory sold was $55,900. Also assume that instead of Virginia reporting business income of $51,000 as a C corporation, its taxable income would have been $1,700.