Compute HC Inc.s current-year taxable income given the following information relating to its 2020 activities. (Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)

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. 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. Compute HC Inc.'s current-year taxable income given the following information relating to its 2020 activities. (Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) (Dr) Compute HC Inc.'s current-year taxable income given the following information relating to its 2020 activities. (Negative should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Description Book Book-tax Taxable Income adjustments Income (Dr) Cr Cr (Dr) Cr Gross profit $ 310,000 $ 310.000 Other Income: Dividend incorre 120.000 120,000 Grer Income $ 430 000 $ 430.000 Expenses: Business expenses other than DRD, CC, and NOL (300.000) (300.000) Federal income tax pas (30,000) 30.000 a Tatal expenses before charitable contribution, NOL And DRD deduction (330,000) (300.000) Income before charitable contribution, NOL and DRD S 100.000 $ 130,000 NOL carryover from prior year 0 (12,000) (12,000) Taxable income for chantable contribution limitation purposes $ (modified taxable income) 118,000 Charitable contributions (50,000) 38.200 (11 800) Taxable income before DRD $ 106.200 Dividends received deduction (DRD) a (944,560) (96.000) S Book Taable income S 50.000 $ 68,200 $ 10,200 (108,560) o