Clampett, Inc., converted to an S corporation on January 1, 2019.At that time, Clampett, Inc., had cash ($40,000), inventory (FMV $60,000, basis $30,000), accounts receivable (FMV $40,000, basis $40,000), and equipment (FMV $60,000, basis $80,000).In 2020, Clampett, Inc., sells its entire inventory for $60,000 (basis $30,000).Assume the corporate tax rate is 21 percent.Clampett, Inc.'s taxable income in 2020 would have been $1,000,000 if it had been a C corporation.How much built-in gains tax does Clampett, Inc., pay in 2020?

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The Answer of Clampett, Inc., converted to an S corporation on January 1, 2019.At that time, Clampett, Inc., had cash ($40,000), inventory (FMV $60,000, basis $30,000), accounts receivable (FMV $40,000, basis $40,000), and equipment (FMV $60,000, basis $80,000).In 2020, Clampett, Inc., sells its entire inventory for $60,000 (basis $30,000).Assume the corporate tax rate is 21 percent.Clampett, Inc.'s taxable income in 2020 would have been $1,000,000 if it had been a C corporation.How much built-in gains tax does Clampett, Inc., pay in 2020?