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McCannon inc has been in operations for four years. The first three years it accumulated operating losses of $80,000. In the fourth year it earned

McCannon inc has been in operations for four years. The first three years it accumulated operating losses of $80,000. In the fourth year it earned $30,000 in operating income. In the current year, its fifth year, it had $20,000 of operating income and $5,000 of dividend income from Irving Inc. McCannon owns 15% of Irving Inc. What is McCannon's tax liability in the current year?

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