In 2020, lucky motor company had sales of $1,600,000 with cost of goods sold of $850,000 and operating expenses of $360,000 (which included depreciation of $90,000). Interest expenses amounted to $35,000. The company received $138,000 in dividend income and $80,000 in interest income. The company paid $131,000 in dividends to stockholders. In order to partially fund this dividend the company sold stock in tesla which it had owned for 3 years. The stock sale resulted in a capital gain of $105,000.

a. Compute the tax payment or refund for the company.

b. Assume in 2021, The lucky co. had an operating loss of $(175,000) and in 2022 they had operating income of $200,000. Given part A above, calculate the tax liability and refund in each of those years (label your work).