During the current tax year, Taxus Corporation has ordinary income of $110,000, a long-term capital loss of $20,000, and a short-term capital loss of $5,000.

1. Calculate Taxus Corporation's tax liability

TABLE 11.1

Corporate Tax Rates

Taxable Income Over				But Not Over				The Tax Is		Of the Amount Over
		$0				$50,000			15%			$0
		50,000				75,000			$7,500 + 25%			50,000
		75,000				100,000			13,750 + 34%			75,000
		100,000				335,000			22,250 + 39%			100,000
		335,000				10,000,000			113,900 + 34%			335,000
		10,000,000				15,000,000			3,400,000 + 35%			10,000,000
		15,000,000				18,333,333			5,150,000 + 38%			15,000,000
		18,333,333							6,416,667 + 35%			18,333,333