Reference no: EM132627629

Question - Alpha Corporation has been in business for two years. It incurred the following items last year (Year 1):

Gross profits on sales 240000

Operating expenses 100000

Long-term capital gain 8000

Short-term capital loss 12000

Alpha reported the following items this year (Year 2):

Gross profits on sales 600,000

Operating expenses 165,000

Long term capital gain 10000

Required - Compute Alpha's taxable income and tax liability for Year 1 and Year 2.