Calculate what is the firms tax liability

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Reference no: EM131968965

Last year, Western Corporation had sales of $5 million, cost of goods sold of S3 million, operating expenses of $175,000 and depreciation of $125,000. The firm received $40,000 in dividend income and paid $200,000 in interest on loans.

Also, Western sold stock during the year, receiving a $40,000 gain on stock owned 6 years, but losing $60,000 on stock owned 4 years. What is the firm's tax liability?

Reference no: EM131968965

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