Problem 11-49 (LO 11-3, LO 11-4, LO 11-5) (Algo)

Shimmer Incorporated is a calendar-year-end, accrual-method corporation. This year, it sells the following long-term assets:

Asset	Sales Price	Cost	Accumulated Depreciation
Building	$ 738,000	$ 723,000	$ 41,500
Sparkle Corporation stock	170,000	226,500	n/a

Shimmer does not sell any other assets during the year, and its taxable income before these transactions is $812,000.

What are Shimmer's taxable income and tax liability for the year?

Description Amount

Taxable Income ?

Tax liability ?