- 8-3 Prepare a reconciliation of book and taxable income - 8-4 Compute the regular tax on corporate taxable income Camden Corporation, a calendar year accrual basis corporation, reported $5 million of net income after tax on its current year financia statements prepared in accordance with GAAP. In addition, the following information is available from Camden's books and records: - Federal income tax expense per books was $1.5 million. - Camden incurred $30,000 of meals and $25,000 of entertainment expenses. Assume for tax purposes that the meal costs are 50% deductible and that the entertainment costs are not deductible. - Camden sold two pieces of equipment used in its business for total sales proceeds of $400,000. The equipment's original cost was $2 million. Book depreciation prior to sale totaled \$1.2 million; tax depreciation totaled $1.5 million. - Camden uses the reserve method of accounting for bad debts. Additions to the reserve during the year totaled $400,000. Accounts receivable actually written off during the year totaled $450,000. - Camden's depreciation expense for book purposes totaled $900,000. Tax depreciation computed under MACRS is $1.25 million. Required: a. Determine Camden's taxable income and regular tax liability. Assume the corporation's tax rate is 21%. Complete this question by entering your answers in the tabs below. Determine Camden's taxable income and regular tax liability. (Consider intermediate values in dollars and not in millions. Enter your answers in whole dollars not in millions.)