Richardson Company is in its first year of operations as a hardware and software retailer (with occasional consulting jobs).Richardson reports the following current year results (without respect to the type of entity):"Business" Income:Sales $490,000; Gross Consulting Fees Collected $30,000; Dividend Income (5% investment in Novice Software Co.) $4,000; Loss on Sale of Novice Stock ($28,000 - $33,000, held 11 months) ( $ 5,000)

"Business" Expenses and Costs:Cost of Goods Sold (142,200); Salaries of 5 employees other than owner Tony Richardson ($30,000 x 5 = 150,000) ; Payroll taxes paid on employees [($150,000 x .0765) + ($35,000 x .062) = 13,645]; Health insurance coverage for employees ($3,000 x 5= 15,000) ; Retirement plan contributions for employees (10% of

salaries) ( 15,000); MACRS depreciation on various company assets ( 35,748); Interest, rent, utilities, insurance, supplies, and miscellaneous expenses ( 59,337); Contributions to

public charities( 13,300) ; Compensation to Owners of "Business":Reasonable salary compensation to Tony Richardson (65,000); Other cash payments to owners (20,000); Health insurance coverage for Tony Richardson (3,000); Retirement plan contribution for owner (10% of "reasonable salary")(6,500)

Tony and Ellen Richardson (both age 53) file a joint federal income tax return in the current

tax year.They do not have any dependents.In addition to any compensation/income from the business described above, Ellen received a salary of $41,300 from ED Industries.Tony and Ellen also received $1,400 personal interest on a joint account,$1,200 personaldividends from jointly-held Thomson Company stock, and $9,200 from the sale of 100 shares of Thomson stock (originally acquired 5 years ago for $3,100).

Tony and

Ellen's personal expenses for the year include $2,600 personal property taxes,

$12,400 state income taxes, 10,300 charitable contributions (not including the

amounts mentioned above), $8,800 interest on personal home mortgage, and $2,600

of unreimbursed employee expenses by Ellen.

Tony and

Ellen's personal expenses for the year include $2,600 personal property taxes,

$12,400 state income taxes, 10,300 charitable contributions (not including the

amounts mentioned above), $8,800 interest on personal home mortgage, and $2,600

of unreimbursed employee expenses by Ellen.

Assuming that Richardson Company is operated as S corporation,

Determine the Richardson's final federal income tax liability