Compute HC Incorporated's current-year taxable income given the following information relating to its current-year (2022) activities. Also, compute HC's Schedule M-1 assuming that HC's federal income tax expense for book purposes is $30,000. Use Exhibit 13-7. Required: Gross profit from inventory sales of $310,000 (no book-tax differences) Dividends HC received from 28 percent-owned corporation of $120,000 (this is also HC's pro rata share of the Corporation's earnings). Expenses other than DRD, charitable contribution (CC), and net operating loss (NOL) are $300,000 (no book-tax differences). NOL carryover from prior year of $12,000. Cash charitable contribution of $50,000. Federal income tax expense Total expenses before charitable contribution, NOL, and DRD deduction Income before charitable contribution, NOL and DRD NOL carryover from prior year Taxable income for charitable contribution limitation purposes (modified taxable income) Charitable contributions Taxable income before DRD Dividends received deduction (DRD) Book/Taxable income (30,000) (330,000) $ 100,000 (12,000) 30,000 (300,000) $ 130,000 (12,000) $ 118, (50,000) 38,200 (11,800) S 106,200 0 50,000 (65,000) ( (77,000) (65,000) 68,200 $ 41,200