In the current year, Vorschusse Corporation (a calendar year C corporation) had operating income of $82,000 and operating expenses of $66,000. In addition, Vorschusse had a long-term capital gain of $5,000 and a short-term capital loss of $6,000.

a.Compute Vorschusse's taxable income and tax for the year.

Taxable income: $____________________

Income tax: $_______________

b.Assume the same facts except that Vorschusse's long-term capital gain was $8,000. Compute Vorschusse's taxable income and tax for the year.

Taxable income: $______________________

Income tax: $___________________