Review the information and answer the questions.

Valencia Communications, Inc. recently realized $$140,000$ in operating income. The company had interest income of $$15,000$ and realized $$80,000$ in dividend income. The company's interest expense was $$30,000.$ Its corporate tax rate is $25\%.$ Valencia Communications is a small company that is not subject to the interest expense deduction limitation$.$

a$.$ What is Valencia Communications' tax liability?

b$.$ Provide the formula to calculate Total Taxable Income and Tax Liability.

Assume a $50\%$ dividend exclusion for tax on dividends.

$\backslash$table$[[$Operating income,$$140,000$