Loon corporation had the following transaction: $400,000 operating income, operating expenses, $25,000 municipal bond interest, $60,000 long term capital gain and $95,000 short term capital loss.
a) compute Loon's taxable income for the year?
b) assume the same facts except that Loon's long term capital gain is $100,000 (instead of $60,000). Compute the taxable income for the year.