1-4. (Corporate income tax) A. Don Drennan Inc. had sales of $6 million during the past year. The company's cost of goods sold was 70 percent of sales; operating expenses, including depreciation, amounted to $800,000. The firm sold a capital asset (stock) for $75,000, which had been purchased 5 months earlier at a cost of $80,000. Determine the company's tax liability. 1-5. (Corporate income tax) The Robbins Corporation is an oil wholesaler. The company's sales last year were $1 million, with the cost of goods sold equal to $600,000. The firm paid interest of $200,000, and its cash operating expenses were $100,000. Also, the firm received $40,000 in divi- dend income while paying only $10,000 in dividends to its preferred stockholders. Depreciation ex- pense was $150,000. Compute the firm's tax liability. Based on your answer, does management need to take any additional action? 1-6. (Corporate income tax) The Fair Corporation had sales of $5 million this past year. The cost of goods sold was $4.3 million, and operating expenses were $100,000. Dividend income totaled $5,000. The firm sold land for $150,000 that had cost $100,000 5 months ago. The firm received $150 per share from the sale of 1,000 shares of stock. The stock was purchased for $100 per share 3 years ago. Determine the firm's tax liability, 1-7. (Corporate income tax) Sales for J. P. Hulett Inc. during the past year amounted to $4 million The firm supplies statistical information to engineering companies. Gross profits totaled $1 mil- lion, and operating and depreciation expenses were $500,000 and $350,000, respectively. Dividend income for the year was $12,000. Compute the corporation's tax liability, 1-8. (Corporate income tax) Anderson & Dennis Inc. sells computer software. The company's past year's sales were $5 inillion. The cost of its merchandise sold came to $3 million. Operating ex- penses were $175,000, plus depreciation expenses totaling $125,000. The firm paid $200,000 inter- est on loans. The firm sold stock during the year, receiving a $40,000 gain on a stock owned 6 years but losing $60,000 on stock held 4 months. Calculate the company's tax liability