Compute Myer Corp.s current years taxable income given the following information relating to its year 1 activities. Also, prepare Myers Schedule M-1 assuming that Myers federal income tax expense for book purposes is $100,000. Use Schedule M-1

Gross profit from inventory sales of $500,000 (no booktax differences).

Dividends Myer received from 25 percent-owned corporation of $100,000 (assume this is also Myers pro rata share of the distributing corporations earnings).

Expenses other than DRD, charitable contribution (CC), and net operating loss (NOL) are $350,000 (no booktax differences).

NOL carryover from prior year of $10,000.

Cash charitable contribution of $120,000.