Clampett,Inc.converted to an S corporation on January 1,2017.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 2018,Clampett,Inc.sells its entire inventory for $60,000 (Basis $30,000).Assume the corporate tax rate is 35% and that Clampett Inc.'s taxable income would have been a $50,000 loss in 2018 if it had been a C corporation.In 2019,Clampett,Inc.'s taxable income would have been $100,000 if it had been a C corporation.How much built-in gains tax does Clampett,Inc.pay in 2018? In 2019?

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The Answer of Clampett,Inc.converted to an S corporation on January 1,2017.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 2018,Clampett,Inc.sells its entire inventory for $60,000 (Basis $30,000).Assume the corporate tax rate is 35% and that Clampett Inc.'s taxable income would have been a $50,000 loss in 2018 if it had been a C corporation.In 2019,Clampett,Inc.'s taxable income would have been $100,000 if it had been a C corporation.How much built-in gains tax does Clampett,Inc.pay in 2018? In 2019?