Virginia corporation is a calendar-year corporation. at the beginning of 2019, its election to be taxed as an s corporation became effective. virginia corp.’s balance sheet at the end of 2018 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 $ 20,750 $ 20,750 accounts receivable 40,900 40,900 inventory 91,650 203,150 land 156,000 181,600 totals $ 309,300 $ 446,400 in 2019, virginia corp. reported business income of $51,500 (this would have been its taxable income if it were still a c corporation). what is virginia’s built-in gains tax in each of the following alternative scenarios?
c. during 2019, virginia corp. sold inventory it owned at the beginning of the year for $101,950. the basis of the inventory sold was $56,350. also assume that instead of virginia corp. reporting business income of $51,500 as if it were a c corporation, its taxable income would have been $1,800.