The Viking Corporation has the following items of income for 2021:

a. Calculate the corporation's 2021 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.

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Operating income Dividend income (12%-owned corporations) Long-term capital gains Short-term capital gains Capital loss carryover from 2020 Charitable cash contributions Net operating loss carryover from 2020 $350,000 15,000 9,000 3,000 8,000 12,000 35,000