Determine taxable income in each of the following instances. Assume that the corporation is a C corporation and that book income is before any income tax expense.
1. Book income of $67,000 including capital gains of $4,900, a charitable contribution of $1,800, and meals and entertainment expenses of $6,000. Book income of $109,000 including capital losses of $10,000, a charitable contribution of $20,500, and meals and entertainment expenses of $2,600.
2. Book income of $84,500 including municipal bond interest of $1,800, a charitable contribution of $5,700, and dividends of $4,400 from a 10% owned domestic corporation. The corporation also has an $7,600 charitable contribution carryover.