1. Use Schedule M-1 to reconcile book income to taxable income. *YOU MUST COMPUTE BOOK AND TAXABLE INCOME FROM DETAILS IN TABLE*

$1,300,000 18,500 400,000 17,000 22,000 740,000 20,000 80,000 72,000 50,000 150,000 45,000 200,000 Gross Profit U.S. Treasu Dividends Received (from 33% owned Domestic Corp.) Treasury Bill Interest Long-Term Capital Gain Long-Term Capital Loss Salary Expense Net Increase to Allowance for Bad Debts for the year Bad Debt-Write-Offs MACRS Depreciation Expense Straight-Line Depreciation (for Book purposes) Charitable Contributions to Salvation Army Key Man Life-Insurance Premiums Other Deductible Expenses