LO1 The Viking Corporation has the following items of income for 2010:

a. Calculate the corporation’s 2010 taxable income and its tax liability.

b. Assume that Viking is, and always has been, an S corporation wholly owned by Fran, a single taxpayer with no other income or deductions. Will either Viking Corporation or Fran realize any tax savings, given the income and liability determined in part a? Explain.
Communication Skills

Transcribed Image Text:

Operating income $350,000 Dividend income (12%-owned corporations) 15,000 Long-term capital gains 9,000 Short-term capital gains 3,000 Capital loss carryover from 2009 8,000 Charitable cash contributions 12,000 Net operating loss carryover from 2009 35,000