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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

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.

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