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In the current year, Smith Corporation (a C Corporation) had operating income of $480,000 and...

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Accounting

In the current year, Smith Corporation (a C Corporation) had operating income of $480,000 and operating expenses of $390,000. In addition, Smith had a long-term capital gain of $55,000 and a short-term capital loss of $40,000.

a. Compute Smith's taxable income and tax for the year.

b. Assume, instead, that Smith's long-term capital gain was $15,000 (not $55,000). Compute Smith's taxable income and tax for the year.

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