Book income and need adjustments to book income to arrive at taxable income. Using the following data to complete Schedule M-1:

• Net income per books (after-tax): $181,230
• Federal income tax expense per books: $88,300
• Tax-exempt interest income: $9,000
• MACRS depreciation in excess of straight-line depreciation: $14,400
• Excess of capital loss over capital gains: $7,200
• Nondeductible meals and entertainment: $6,450
• Interest on loan to purchase tax-exempt bonds: $1,100

2. Please explain the book-tax income analysis, including an explanation of general concepts surrounding the calculation and information on their specific book-tax differences.

Answer rating: 100% (QA)

1 Net income per books aftertax 181230 2 Federal income tax expense per books 88300 3 Taxexempt inte... View the full answer