26. Mondial Corporation’s financial accounting records show it had gross revenue of $980,000, cost of goods sold of $420,000, operating expenses of

$380,000, and $4,000 of dividends received from a 40% owned company.

Its operating expenses included the following:

$6,000 of life insurance premiums on which it was the beneficiary

$22,000 of meals and entertainment expenses

$30,000 of charitable contributions

a. Determine Mondial Corporation’s taxable income.

b. Determine Mondial Corporation’s income tax liability.

c. Determine Mondial Corporation’s income tax liability if book depreciation is $15,000 less than tax depreciation.