*38. Comprehensive Problem. Scandinavian Furniture Inc., a calendar-year corporation, is worried about the accumulated earnings tax. In February, the following facts are available for the preceding year: $220,000 110,000 3,000 10,000 Accumulated earnings and profits as of 12/31 Taxable income (exclusive of capital gains) Charitable contributions in excess of limit Long-term capital gain, taxable at 34 percent Dividends from Canadian corporations Dividends from U.S. corporations (25 percent owned) Total income tax liability Demonstrable business needs 7,000 8,000 60,000 235,000 If the consent dividend route is to be used, which amount must be reported to avoid the accumulated earnings tax? *38. Comprehensive Problem. Scandinavian Furniture Inc., a calendar-year corporation, is worried about the accumulated earnings tax. In February, the following facts are available for the preceding year: $220,000 110,000 3,000 10,000 Accumulated earnings and profits as of 12/31 Taxable income (exclusive of capital gains) Charitable contributions in excess of limit Long-term capital gain, taxable at 34 percent Dividends from Canadian corporations Dividends from U.S. corporations (25 percent owned) Total income tax liability Demonstrable business needs 7,000 8,000 60,000 235,000 If the consent dividend route is to be used, which amount must be reported to avoid the accumulated earnings tax