Compute MV, Corp.’s current year taxable income given the following information relating to its current year activities. Also, compute MV’s Schedule M-1 assuming that MV’s federal income tax expense for book purposes is $100,000.

• Gross profit from inventory sales of $500,000 (no book-tax differences).

• Dividends MV received from 25 percent owned corporation of $100,000 (assume this is also MV’s pro rata share of the distributing corporation’s earnings).

• Expenses other than DRD, charitable contribution (CC), and net operating loss (NOL) are $350,000 (no book-tax differences).

• NOL carryover from prior year of $10,000.

• Cash charitable contribution of $120,000.