Problem 17-33 (a) (LO. 1, 3)

In the current year, Werbung Corporation (a calendar year C corporation) had operating income of $430,000 and operating expenses of $355,000. In addition, Werbung had a long-term capital gain of $25,000, a long-term capital loss of $2,000 and a short-term capital loss of $30,000.

a. Compute Werbung's taxable income and tax for the year. Taxable income: $ Income tax: $

b. Assume the same facts except that Werbung's long-term capital gain was $50,000. Compute Werbung's taxable income and tax for the year. Taxable income: $ Income tax: $