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 $ 22,250 $ 22,250 Accounts receivable 42,700 42,700 Inventory 94,950 209,450 Land 168,000 194,800 Totals $ 327,900 $ 469,200 In 2017, Virginia reported business income of $54,500 (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 $105,850. The basis of the inventory sold was $59,050.

b. During 2017, Virginia sold inventory it owned at the beginning of the year for $105,850. The basis of the inventory sold was $59,050. Also, assume Virginia had a net operating loss carryover of $25,800 from its time as a C corporation.

c. During 2017, Virginia sold inventory it owned at the beginning of the year for $105,850. The basis of the inventory sold was $59,050. Also assume that instead of Virginia reporting business income of $54,500 as a C corporation, its taxable income would have been $2,400.