Western Corporation reports the following results for the current year:

Gross profits on sales : $150,000

Long term capital gain: $8,000

Long term capital loss: $15,000

Short term capital gain: $10,000

Short term capital loss: 2,000

Operating expenses: 61,000

a. What are Western's taxable income and income tax liability for the current year?

b. How would your answer change if Western's short term capital loss is $5000 instead of $2000?