Problem:
In 2013, a company had a $550,000 loss. In 2012, they recorded $250,000 of EBT; in 2011, they had recorded EBT of $100,000. In 2014, the company reported $320,000 of taxable income from operations, but before accounting for $10,000 of interest income and $20,000 of dividend income. Please help me to compute the company's federal tax liability in 2014. And explain why. Please provide all computation and formulas.