Bongo Corporation is incorporated in 2009. It has no capital asset transactions in 2009. From 2010 through 2013, Bongo has the following capital gains and losses:

Assuming that Bongo’s marginal tax rate during each of these years is 34%, what is the effect of Bongo’s capital gains and losses on the amount of tax due eachyear?

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2010 2011 2012 2013 Capital gains $14,000 12,000 9,000 30,000 Capital losses (8,000) 26,000(22,000) 11,000)