Problem
Smith & Roberts, P.C., is a personal service corporation engaged in the practice of accounting. For tax year, 2021, it had the following items in computing its taxable income.
Gross income from services: $700,000
Operating expenses 350,000
Short-term capital gain 30,000
Long-term capital loss 35,000
Dividends from various
corporations (less than 20% 10,000
ownership)
charitable contribution 20,000
What is the corporation's taxable income and tax liability for 2021?