Complete the Schedule M-1 for the tax period ended 12/31/18 on the following facts: Net income per books and financial statements = $95,000 Federal income tax per books at 12/31/21 = $42,000 Repairs Capitalized = $250,000 (hint - capitalized means that while deducted for book purposes, the amount is not currently deductible for tax purposes, except for the part of the total amount that is currently deductible on Line 8.a.) Nondeductible business gifts = $7,300 (hint-permanent, unfavorable book-tax difference) Books include $4,000 of meals and entertainment expense (hint- remember the rule!) Advance rental payments of $100,000 (hint - since this is accrued as a prepaid expense, it is not an item of income for book accounting purposes, but for tax the advance payment is taxable as income and should appear on Line 4) Estimated bad debt losses on pending lawsuits and claims of $50,000 Interest income from tax-exempt securities of $36,737 (See Exercise 1) Tax depreciation on repairs capitalized $250,000 with MACRS rate of 24.49 percent (Hint, for line 8.a., the MACRS rate of the total amount is currently deductible for tax purposes and should appear on Line 8.a.) Warranty reserve of $280,000 (Hint - this amount is a current year deduction for tax purposes that is itemized on Line 8) Contribution carry over from 12/31/20 of $15,000 (hint - you have to determine whether all or some of this amount is can be carried over to the current year. This is the opposite of the previous question where you had to determine that amount that had to be carried over. Here, you must determine the amount of the carryover that can be used currently. The books do not indicate any current year contribution. To determine the limitation, take Line 10 and add in the potential carryover of $15,000 and multiply by 10% to arrive at the maximum charitable contribution for the year. If the carryover is more then it is limited to the max; if it is less, then all of the carryover is currently deductible)