Question: Gamma Services Income Type Reported Amount Correct Amount Operating Income $3,200,000 $3,000,000 Capital Gains $400,000 $350,000 Non-operating Income $200,000 $250,000 Requirement: Recalculate the taxable income

Gamma Services

Income Type	Reported Amount	Correct Amount
Operating Income	$3,200,000	$3,000,000
Capital Gains	$400,000	$350,000
Non-operating Income	$200,000	$250,000

Requirement: Recalculate the taxable income and determine the correct tax liability at a corporate tax rate of 28%. Explain the necessary adjustments.

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