a. and b. Compute HC Incorporated's current-year taxable income given the following information relating to its current-year (2023) activities. Also, compute HC's Schedule M-1 assuming that HC's federal income tax expense for book purposes is $30,000. Use Exhibit 16-7. Required: Gross profit from inventory sales of $310,000 (no booktax differences). Dividends HC received from 28 percent-owned corporation of $120,000 (this is also HC's pro rata share of the corporation's earnings). Expenses other than DRD, charitable contribution (CC), and net operating loss (NOL) are $300,000 (no booktax differences). NOL carryover from prior year of $12,000. Cash charitable contribution of $50,000.

Compute HC Incorporated's current-year taxable income given the tollowing information relating to its current-year (2023 activities. Note: Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Compute HC's Schedule M-1 assuming that HC's federal income tax expense for book purposes is $30,000. Note: Enter all values as positive numbers