Compute HC Inc.'s current-year taxable income given the following information relating to its 2020 activities. Also, compute HC's Schedule M-1 assuming that HC's federal income tax expense for book purposes is $30,000. UseExhibit 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).
• Expensesother thanDRD, 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.

I found the answers and there is one line I don't understand, could you please help:

For the charitable contributions:

Book income Book-tax difference taxable income

(50,000) 38,200 (11,800)

What is the calculation to come up with 38,200?