In 2020, Reid Incorporated, a manufacturer and retailer of computer parts, reported the following activity during the year:

Gross Profit $77,061,358

Dividends from 26% owned corporation 174,036

Operating Expenses 41,456,757

Charitable Contributions 8,115,410

Capital Gains 2,491,413

Capital Losses 2,538,342

In addition, Reid has a net operating loss carryover from 2017 amounting to $34,027,980

A: Calculate Reids taxable income and tax liability. (10 points)

B: Calculate Reids charitable contribution carryover and net operating loss carryover to 2021 (2 points each)