Based on the book income to taxable income reconciliation you completed in week 2, and any feedback provided, use the attached spreadsheet to complete Palo Altos Schedule M-1.

Book Income/(Loss)		(DR)	Cr	Taxable Income
$64,800,000				64,800,000
-45,600,000				-45,600,000
$19,200,000				19,200,000
75,000	(1)	25,000		50,000
80,000				80,000
$19,355,000				19,330,000
-9,630,000	(2)			-9,630,000
-350,000	(3)		-350,000
-1,950,000				-1,950,000
-658,000				-658,000
-857,000				-857,000
-50,000	(4)			-50,000
-1,750,000	(5)	550,000		-2,300,000
-95,000	(6)		95,000
-60,000				-60,000
-25,000	(7)		25,000
-1,250,000			1,250,000
-350,000	(8)		10,000	-340,000
-17,025,000				-15,845,000
2,330,000				3,485,000

	Palo Alto, Inc. M-1
1	Net income per books
2	Federal income tax per books
3	Excess of capital losses over capital gains
4	Income subject to tax not recorded on books this year (itemize)
5	Expenses recorded on books this year not deducted on this return
	a. Depreciation
	b. Contributions carryover
	c. Travel and entertainment
6	Add lines 1 through 5		$0
7	Income recorded on books this year not included on this return
	a. Tax exempt interest
8	Deductions on this return not charged against book income this year
	a. Depreciation
	b. Contributions carryover
9	Add lines 7 and 8		0
10	Income (line 28, page 1) line 6 less line 9		$0