Example: Problem 11-13 Answer (a) Compute Western's federal taxable income and regular tax liability. " BI=500,000 " DRD= - FIT=103,00 " Capital loss=2,000 - Tax exempt interest =5,000 Depreciation =15,000 Example: Problem 11-13 Answer (a) Compute Western's federal taxable income and regular tax liability. " BI=500,000 " DRD= - FIT=103,00 " Capital loss=2,000 - Tax exempt interest =5,000 Depreciation =15,000