In 2013,Apricot Corporation had taxable income of $120,000.Included in taxable income was a $10,000 capital gain.The $120,000 of taxable income does not include a $15,000 capital loss carryforward available from the previous year.What is Apricot Corporation's 2013 income tax liability before any tax credits?

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The taxable income is $120,000, which includes a $10,000 capital gain. The capital loss carryforward of $15,000 can offset the capital gain, reducing it to $0. Therefore, the taxable income remains $120,000. The corporate tax rate for 2013 was 34% for income between $100,000 and $335,000. Thus, the tax liability is 34% of $120,000, which is $40,800. However, the tax rate for income between $75,000 and $100,000 is 25%, so the first $100,000 is taxed at 25% ($25,000), and the remaining $20,000 is taxed at 34% ($6,800), totaling $31,800. However, the tax brackets have a built-in surcharge for income between $100,000 and $335,000, effectively making the tax $26,150.

In 2013,Apricot Corporation Had Taxable Income of $120,000