C:3-58 Reconciling Book Income and Taxable Income. Alpha Corporation reports the following results for the current year: Net income per books (before federal income taxes) Federal income tax expense per books Net income per books (after federal income taxes) Tax-exempt interest income Interest on loan to purchase tax-exempt bonds MACRS depreciation exceeding book depreciation Net capital loss Insurance premium on life of corporate officer where Alpha is the beneficiary Excess charitable contributions carried over to next year $738,000 (156,240) $581,760 10,000 7,000 40,000 8,000 9,000 4,000 a. Prepare a reconciliation of Alpha's taxable income before special deductions with its book income. See Problem C:3-68 for related Form 1120, Schedule M-1. b. Prepare a tax provision reconciliation as in Step 9 of the Tax Provision Process. Assume a 21% tax rate.