Bb Announcements - FIN325-01-5 x M Inbox (877) - lavalos0536@sds x (>ACCTG325-02: Intermediate M X Question 1 - Chapter 11 Homev x ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%2. Update : Chapter 11 Homework (Tax) Submitted 6.88/8 Total points awarded Help Exit Cramer Corporation, a calendar year, accrual basis corporation, reported $1 million of net income after tax on its 2020 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 $200,000. . Cramer's book income included $10,000 of dividends received from a domestic corporation in which Cramer owns a 25 percent 6.88/8 stock interest, and $4,000 of dividends from a domestic corporation in which Cramer owns a 5 percent stock interest. points awarded . Cramer recognized $10,000 of capital losses this year and no capital gains. . Cramer recorded $8,000 of book expense for meals and $10,000 of book expense for entertainment costs. Scored Cramer's depreciation expense for book purposes totaled $400,000. MACRS depreciation was $475,000. Required: a. Compute Cramer's federal taxable income and regular tax liability. Book b. Prepare a Schedule M-1, page 6, Form 1120, reconciling Cramer's book and taxable income. References Complete this question by entering your answers in the tabs below. Required A Required B Prepare a Schedule M-1, page 6, Form 1120, reconciling Cramer's book and taxable income. (Any Expenses (Line 5) and Deductions (Line 8) that are not included under Depreciation, Charitable Contributions, and Travel and Entertainment should be combined in the corresponding line item "Other". Enter all amounts as positive. Enter your answers in whole dollars not in millions.) Show less A Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions 1 Net income (loss) per books 1,000,000 7 Income recorded on books this year not included on 2 Federal income tax per books 200,000 this return (itemize): 3 Excess of capital losses over capital gains 10,000 Tax-exempt interest 4 Income subject to tax not recorded on books this year (itemize): 0 0 5 Expenses recorded on books this year not deducted 8 Deductions on this return not charged against book Mc Graw Bb Announcements - FIN325-01-5 x M Inbox (877) - lavalos0536@sds x (> ACCTG325-02: Intermediate M X Question 1 - Chapter 11 Homev X ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%2. Update : Chapter 11 Homework (Tax) Submitted 6.88/8 Total points awarded Help Exit 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. 6.88/8 points awarded Complete this question by entering your answers in the tabs below. Scored Required A Required B Prepare a Schedule M-1, page 6, Form 1120, reconciling Cramer's book and taxable income. (Any Expenses (Line 5) and Deductions (Line 8) that Book are not included under Depreciation, Charitable Contributions, and Travel and Entertainment should be combined in the corresponding line item "Other". Enter all amounts as positive. Enter your answers in whole dollars not in millions.) Show less A References Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions 1 Net income (loss) per books 1,000,000 7 Income recorded on books this year not included on 2 Federal income tax per books 200,000 this return (itemize): 3 Excess of capital losses over capital gains 10,000 Tax-exempt interest 4 Income subject to tax not recorded on books this year (itemize): 0 0 0 5 Expenses recorded on books this year not deducted on 8 Deductions on this return not charged against book this return (itemize): income this year (itemize): a Depreciation 0 a Depreciation 75,000 b Charitable contributions b Charitable contributions 0 c Travel and entertainment 9,000 x c Other (include all items) 0 75,00 d Other (include all items) 0 9,000 9 Add lines 7 and 8 75,000 6 Add lines 1 through 5 1,219,000 10 Income (page 1, line 28) - line 6 less line 9 1,144,000 THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. @ 2020 McGraw-Hill Education Mc Graw
