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Hecht Corporation reports the following results for 2021: Gross receipts on sales $1,900,000 Cost of goods sold & operating expenses 1,600,000 Long-term capital gain 50,000

Hecht Corporation reports the following results for 2021:

Gross receipts on sales

$1,900,000

Cost of goods sold & operating expenses

1,600,000

Long-term capital gain

50,000

Short-term capital loss

100,000

Dividend income from 18% owned domestic corporations

1,000,000

Cash charitable contribution

200,000

Additional information:

Hecht has a $375,000 net operating loss carryover from the prior year.

  1. What is Hechts taxable income for the current year?
  2. What is Hechts regular federal income tax liability for the current year?
  3. What carrybacks or carryovers are available to other tax years?
  4. What would change if instead of making a cash contribution, the charitable contribution was investment land purchased 3 years ago and currently valued at $200,000?

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