Question - Sycamore Corporation's financial statements show the following items for the current year in its financial accounting records:
Gross receipts $500,000
Cost of goods sold 260,000
Capital loss 7,000
Salaries and wages 80,000
Operating expenses 50,000
Depreciation 12,000
Charitable contributions 10,000
Dividend income 5,000
For tax purposes, depreciation is $22,000. Sycamore owns less than 20% of the company from which it received dividends. Calculate Sycamore's taxable income, tax liability, and carryforwards.