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Quiz 1 Solutions for Financial Statements and TaxesBuiltrite had sales of $700,000 and COGS of $280,000. In addition, operating expenses were calculated at 25% of sales. Builtrite also received dividends of $50,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $70,000 was realized during the year along with a capital loss of $50,000 Based on the above information, answer the following 4 questions: 1. What is Builtrite’s taxable income?02. Based on Builtrite’s taxable income, what is their tax liability?