Tempe Corporation is a calendar-year corporation. At the beginning of 2020, its election to be taxed as an S corporation became effective. Tempe Corp.’s balance sheet at the end of 2019 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation):

Asset	Adjusted basis	FMV
Cash	$20,000	$20,000
Accounts receivable	40,000	40,000
Inventory	160,000	200,000
Land	150,000	120,000
Totals	$370,000	$380,000

Tempe Corp.’s business income for the year was $40,000 (this would have been its taxable income if it were a C corporation).

a. During 2020, Tempe Corp. sold all of the inventory it owned at the beginning of the year for $210,000.  What is its built-in gains tax in 2020?

b. Assume the same facts as in part (a), except that if Tempe Corp. were a C corporation, its taxable income would have been $7,000.  What is its built-in gains tax in 2020?

c. Assume the original facts except the land was valued at $140,000 instead of $120,000.  What is Tempe Corp.’s built-in gains tax in 2020?