A: Taxable income= Tax Liability=

B: 5c= 8a=

Cramer Corporation, a calendar year, accrual basis corporation, reported $1.85 million of net income after tax on its 2018 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 $217,000 . Cramer's book income included $27,000 of dividends received from a domestic corporation in which Cramer owns a 25 percent stock interest, and $12,500 of dividends from a domestic corporation in which Cramer owns a 5 percent stock interest . Cramer recognized $27,000 of capital losses this year and no capital gains Cramer recorded $16,600 of book expense for meals and $18,500 of book expense for entertainment costs. Cramer's depreciation expense for book purposes totaled $417000. MACRS depreciation was $475,000. a. Compute Cramer's federal taxable income and regular tax liability. b. Prepare a Schedule M-1. page 5, 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 llability. (Enter your answers in whole dollars not in millions.) Taxable income Tax liability Required B