CORPORATE CAPITAL GAINS. In addition to ordinary income of $105,000, the Pernell Company had the following capital gains and losses for 19x9:

Short-term capital gains ......... $18,000 a Short-term capital losses ......... 2,000 Long-term capital gains ......... 34,000 Long-term capital losses ......... 11,000 REQUIRED:

1. What amount of capital gains will be a part of the ordinary income component of corporate income?

2. How will the net amount be taxed?