An S Corporation in Lawrence,Kansas Has a Recognized Built-In Gain

An S corporation in Lawrence,Kansas has a recognized built-in gain of $110,000 and taxable income of $90,000.The company has an $8,000 NOL carryforward from a C corporation year,and a $9,000 business credit carryforward from a C corporation year.The built-in gains tax liability is:

A) $0.
B) $19,700.
C) $26,700.
D) $28,700.
E) None of the above.