Cruz Corporation reports the following results for the current year:

Gross sales S150,000

Long-term capital loss 10,000

Charitable contributions 10,000

Cost of goods sold 30,000

Short-term capital loss 5,000

Officer salaries 30,000

Client meals 4,000

Rent 12,000

Political contributions 3,000

Advertising expense 2,000

Salaries 10,000

Payroll taxes 3,200

Parking tickets 300

Officer life insurance 4,000

Repairs and maintenance 1,500

Dividends (40% owned domestic corp) 30,000

Federal income tax for 2019 10,000

Corporate State taxes for 2019 4,300

a. What are Cruzs taxable income and income tax liability?

b. What, if any, carrybacks and carryovers are available and to what years should they be carried to?

Cruz Corporation reports the following results for the current year: