2) Baxter, a taxpayer that files his return using single status, is the sole shareholder of Sadie Corporation, an S Corporation. Sadie Corporation has a 2018 et operating loss of $40,000. Prior to taking into consideration the net operating loss of Sadie Corporation, Baxter's 2018 taxable income is $65,000. Calculate Baxter's total 2018 taxable income and 2018 tax liability.