JKEB Corporation has the following revenues and expenses for the current tax year:

Sales revenue, net of returns . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000

Dividend Income (less than 20% owned investees) . . . . . . . . . . 25,000

Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000

Normal business expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000

JKEB Corporation had the following items during its 2012 tax year:

Net income from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000

Dividends received (from less than 20% owned investees). . . . . . . . . . . 10,000

Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000

Net operating loss carryover from 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000

Long-term capital gains. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000

Long-term capital losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000

Short-term capital gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000

Capital loss carryover from 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000

Tax Credit 4,500

6. Compute JKEB Corporations 2012 taxable income and income tax liability before tax credits.

7. What are the nature and amount of any carryovers to 2013?

8. What is the taxable amount due after using the tax credit?