Century Cleaning, Inc. provides cleaning services in Atlanta, Georgia. It is not a member of a controlled or an affiliated group. Century reports the following results for the current year:

Taxable income …………………………………………. $500,000

Federal income taxes (at 34%) …………………………..     170,000

Dividends paid in August of the current year            ……………     75,000

Included in taxable income are the following items that may require special treatment:

Long-term capital gains …………………………………     $ 30,000

Short-term capital gains …………………………………      10,000

Dividends from 21%-owned domestic corporation …….     100,000

Excess charitable contributions from last year that

are deductible in the current year ……………………….      25,000

Century’s accumulated E&P balance and its reasonable business needs on January 1 of the current year, were $125,000. The firm can justify the retention of $90,000 of current E&P to meet its reasonable business needs. Assume the corporation is not eligible for the U.S. production activities deduction.

a. What is Century’s accumulated taxable income?

b. What is Century’s accumulated earnings tax liability?