1.for 2021, Forrway corporation, an accrual basis calendar year corporation, had net income per books of $ 111,550 and the following transactions: premiums on life insurance policy on its key employees-$6000, excess capital losses $2000, excess tax depreciation $9000, life insurance proceeds on life of its key employees $55000, rent income received in 2021 $40000 ( $30000 is prepaid and related to 2021) tax exempt interest income $8000, federal income tax liability for 2021 $15450, prepaid rent received and properly taxed in 2020 ( but not earned for financial accounting purpose until 2021) $15000, interest expense on tax exempt interest income item $2000 The total amount subtracted from net income per books for forrway corporation in its schedule schedule M-1 reconciliation for the tax year of 2021 is

$55450

$87000

$80000

$167000

2. for the year of 2021, Cherie corporation, an accrual basis calendar-year corporation, had net income per books of $ 134,350 and the following transactions: premiums on life insurance policy on its key employees-$15000, excess capital losses $6000, excess tax depreciation $8000, life insurance proceeds on life of its key employees $50000, rent income received in 2021 $25000 ( $20000 is prepaid and related to 2021) tax exempt interest income $4000, expense related to tax exempt interest income $4500, prepaid rent received and properly taxed in 2020 ( but not earned for financial accounting purpose until 2021) $50000, federal income tax liability for 2021 $ 17150, using the schedule interest schedule M-1 format the total additions to net income per books for cherie corporation for the year of 2021 is

$112000

$87650

$62650

$197000