Whitlaw Corporation has $150,000 of gross profit on sales, operating expenses of $60,000, $4,000 dividend income from a 1 percent owned corporation, a $10,000 gain and $15,000 capital loss, a $15,000 Section 179 deduction, additional tax depreciation of $25,000 (total financial accounting depreciation is $22,000), a $5,000 charitable contribution, and a net operating loss carryover from the prior year of $10,000.
a. What is Whitlaw's taxable income?
b. What is Whitlaw's income tax?
c. Complete a Schedule M-1 or a facsimile for the corporation.