Alpha Corporation has been in business for two years. It incurred the following items last year (Year 1):
Gross profits on sales ………………………………………….. $240,000
Operating expenses ……………………………………………. 100,000
Long-term capital gain ………………………………………… 8,000
Short-term capital loss …………………………………………. 12,000
Omega reported the following items this year (Year 2):
Gross profits on sales ………………………………………….. $600,000
Operating expenses ……………………………………………. 165,000
Long-term capital gain ………………………………………… 10,000
Assume that qualified production activities income in each year equals gross profit minus operating expenses. Compute Alpha’s taxable income and tax liability for Year 1 and Year 2.