Capital Corporation had the following results in 1997: Gross receipts from operations... Net short-term capital gain.. Net long-term capital loss.. Cost of goods sold. $200,000 50,000 (75,000) 60,000 Operating expenses.. 40,000 Dividends received from 30% owned domestic corporation.. 80,000 a. What is Capital Corporation's taxable income and regular income tax liability for 1997 (10)? b. Assuming that Capital Corporation's taxable income in 1996, its first year of existence, was $400,000, which included a net short-term capital gain of $50,000, what advice should be given to Capital with respect to its net capital gain/loss situation.