A company has a taxable income of $550,000 before consideration of long-term and short-term transactions. With the transactions shown in the table below, determine the following (not Sec. 1245 or 1250 property):
a) Total tax liability for the year
b) The tax liability if the $4,000 and $3,000 amounts under short-term are losses.
c) The tax liability if the $4,000, $3,000, and $8,000 amounts under long-term are losses.
d) The tax liability if all long-term transactions are losses.
Transaction
Long-Term: $4,000, $3,000, $8,000, $1,000, $6,000
Short-Term:
1, 2, 3, 4, 5, 6, 7, 8
$4,000, $3,000, $2,000, $1,000