3 1.68 points eBook Print References Cramer Corporation, a calendar year, accrual basis corporation, reported $1.35 million of net income after tax on its financial statements prepared in accordance with GAAP. The corporation's books and records reveal the following information: Cramer's federal income tax expense per books was $207,000. Cramer's book income included $17,000 of dividends received from a domestic corporation in which Cramer owns a 25 percent stock interest, and $7,500 of dividends from a domestic corporation in which Cramer owns a 5 percent stock interest. Cramer recognized $17,000 of capital losses this year and no capital gains. Cramer recorded $11,600 of book expense for meals not provided by a restaurant and $13,500 of book expense for entertainment costs. Cramer's depreciation expense for book purposes totaled $407,000. MACRS depreciation was $475,000. Required: a. Compute Cramer's federal taxable income and regular tax liability. b. Prepare a Schedule M-1, page 6, Form 1120, reconciling Cramer's book and taxable income. Complete this question by entering your answers in the tabs below. Required A Required B Compute Cramer's federal taxable income and regular tax liability. (Enter your answers in whole dollars not in millions.) Taxable income Tax liability Amount < Required A Required B >