Century Cleaning, Inc. provides cleaning services in Atlanta, Georgia. It is not a member of a controlled or an affiliated group. Century reports the following results for the current year:

Taxable income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500,000

Federal income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,000

Dividends paid in August of the current year . . . . . . . . . . . . . . . 75,000

Included in taxable income are the following items that may require special treatment:

Century's accumulated E&P balance and its reasonable business needs on January 1 of the current yea r, were $125,000. The firm can justify the retention of $90,000 of current E&P to meet its reasonable business needs.

a. What is Century's accumulated taxable income?

b. What is Century's accumulated earnings tax liability?

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Long-term capital gains Short-term capital gains Dividends from 22%-owned domestic corporation Excess charitable contributions from last year that are deductible in the current year $ 30,000 10,000 100,000 25,000