Hecht Corporation reports the following results for 2021:

Gross receipts on sales	$1,900,000
Cost of goods sold & operating expenses	1,600,000
Long-term capital gain	50,000
Short-term capital loss	100,000
Dividend income from 18% owned domestic corporations	1,000,000
Cash charitable contribution	200,000

Additional information: 

Hecht has a $375,000 net operating loss carryover from the prior year.

1. What is Hecht’s taxable income for the current year?
2. What is Hecht’s regular federal income tax liability for the current year?
3. What carrybacks or carryovers are available to other tax years?
4. What would change if instead of making a cash contribution, the charitable contribution was investment land purchased 3 years ago and currently valued at $200,000?

Answer rating: 100% (QA)

Part A Hechts taxable income is the income on which ta... View the full answer