9-26) Mondial Corporations financial accounting records show it had gross revenue of $980,000, cost of goods sold of $420,000, operating expenses of $380,000, and $4,000 of dividends received from a 40% owned company. Its operating expenses included the following: $6,000 of life insurance premiums on which it was the beneficiary $22,000 of meals and entertainment expenses $30,000 of charitable contributions a. Determine Mondial Corporations taxable income. b. Determine Mondial Corporations income tax liability. 0-50,000 15%, 50,001 - 75,000 25%, 75,001 - 100,000 34%, 100,001 - 335,000 39%. 335,001 - 10,000,000 34%.

9-58) June owned all the stock of Corporation A. Over the years, the corpora- tion had been very successful but had never paid any dividends, although it had substantial earnings and profits. June wanted to expand into another line of business as a sole proprietor but did not have the cash to do so. June decided to form B, a new corporation. She contributed all the stock of A to B. B borrowed $100,000 from a bank using A stock as collat- eral. B then distributed all of its stock and the $100,000 to June. How should June treat the distribution of the stock and the $100,00