Capital corporation taxable income


Capital Corporation had the following results in 2012:

Gross receipts from operations: $200,000
Net short-term capital gain: $50,000
Net long-term capital loss: ($75,000)
Cost of goods sold: $60,000
Operating expenses: $40,000
Dividends received from 30% owned domestic corporation: $80,000

What is Capital Corporation's taxable income and regular income tax liability for 2012?

Assuming that Capital Corporation's taxable income in 2011, its first year of existence, was $400,000, which included a net short-term capital gain of $50,000, what advice should be given to Capital with respect to its net capital asset position for 2012?

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Accounting Basics: Capital corporation taxable income
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