Compute HC Incorporated's current-year taxable Income given the following Information relating to its 2021 activities. Also, compute HC's Schedule M-1 assuming that HC's federal income tax expense for book purposes is $30,000. Use Exhibit 16-6 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. Assume the charitable donation is not a qualified contribution because HC Incorporated did not make the necessary election. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Compute HC Incorporated's current-year taxable income given the following information relating to its 2021 activities. (Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Book Income Book-tax Book-tax Description Taxable Income [Dr) Cr adjustments adjustments (Dr) Cr (Dr) Cr Gross profit 310,000 $ 310,000 Other income Dividend income 120.000 20.000 Gross Income $ 430,000 30,000 Expenses: Business expenses other than DRD, CC. and NOL (300,000) (300,000) Federal income tax expense 30,000 10,000 Total expenses before charitable contribution, NOL, and DRD deduction (330,000) (300,000) Income before charitable contribution, NOL and DRD $ 100,000 $ 130,000 NOL carryover from prior year o (12,000) 12,000) Taxable income for charitable contribution limitation purposes (modified taxable income) 118,000 Charitable contributions (50,000) 50,000) Taxable income before DRD 8,000 Dividends received deduction (DRD) Book/Taxable income $ 0,000 $ (12,000) $ 30,000 $ 88,000