Question - During the year, Loon Corporation has the following trancastions: $ 400,000 operation income, $355,000 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 Loon's long-term capital gain is $ 100,000(instead of $ 60,000). Compute Loon's taxable income for the year.