1. The Dawg corporation owns 10% of Company A and 25% of Company B. Dividends received from Company A were $139,000 and from Company B were $203,000. If Dawg's taxable income not including the dividends is $2,000,000, calculate Dawg's taxable income after including the dividend information.

2. Flip's Pizzeria Inc. has the following financial items for the current year:

Advertising Expenses $75,000

Cost of Goods Sold $765,000

Dividend Income (Flip owns less than 20% of the other corporation) $4,500

Interest Expense $6,000

Municipal Bond Interest Income $2,500

Other Operating Expenses $540,000

Sales $1,810,000

Wages and Salaries $400,000

Calculate Flip's taxable income for the current year.