What is merced taxable income

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Question - In 2020, Merced, Inc. (a C-corporation) had net operating income of $20,000. During 2021, Merced also had long-term capital gains of $50,000 and long-term capital losses of $65,000. In addition, Merced, Inc. received a $70,000 dividend from Dolphin, Inc. in 2020. Merced owns 25% of the shares of Dolphin. Note: the operating income only includes revenue and expenses directly related to operations (it does not include any capital transactions or dividends).

-What is Merced's taxable income for 2020?

-Determine Merced's tax liability of 2020.

Reference no: EM132953496

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