Cramer Corporation, a calendar year, accrual basis corporation, reported $1 million of net income after tax on its 2019 financial statements prepared in accordance with GAAP. The corporation's books and records reveal the following information:

• Cramer's federal income tax expense per books was $200,000.
• Cramer's book income included $10,000 of dividends received from a domestic corporation in which Cramer owns a 25 percent stock interest, and $4,000 of dividends from a domestic corporation in which Cramer owns a 5 percent stock interest.
• Cramer recognized $10,000 of capital losses this year and no capital gains.
• Cramer recorded $8,000 of book expense for meals and $10,000 of book expense for entertainment costs.
• Cramer's depreciation expense for book purposes totaled $400,000. MACRS depreciation was $475,000.

Chapter11HWK x + 7 X 6 9 C i newconnectmheducation.com/ow/connect.html 0' {I 3' e O Chapter11 HWK 0 Saved Help Sove& Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question : Cramer Corporation, a calendar year, accrual basis corporation, reported $1 million ofnet income after tax on its 2019 nancial statements prepared in accordance with GAAP. The corporation's books and records reveal the following information: 0.8 points - Cramer's federal income tax expense per books was $200,000. - Cramer's book income included $10,000 of dividends received from a domestic corporation in which Cramer owns a 25 percent stock interest, and $4,000 of dividends from a domestic corporation in which Cramer owns a 5 percent stock interest. - Cramer recognized $10,000 of capital losses this year and no capital gains. - Cramer recorded $8,000 of book expense for meals and $10,000 of book expense for entertainment costs. - Cramer's depreciation expense for book purposes totaled $400,000. MACRS depreciation was $475,000. 3. Compute Cramer's federal taxable income and regular tax liability. b. Prepare a Schedule M-1, page 6, Form 1120, reconciling Cramer's book and taxable income. 0 Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a Schedule Ml, page 6, Form 1120, reconciling Cramer's book and taxable income. (Any Expenses (Line 5) and Deductions (Line 8) that are not included under Depreciation, Charitable Contributions, and Travel and Entertainment should be combined in the corresponding line item \"Other". Enter all amounts as positive. Enter your answers in whole dollars not in millions.) Show lessA ashedule Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to le Schedule M-3. See instructions 1 Net Income (loss) per books 7 Income recorded on books this year not Included on I v M: mw ( Prev 7 of 11 Next > Emu-on ,0 Type here to search ENG wwaoao Chapter 11 HWK X + X C newconnect.mheducation.com/flow/connect.html OF Chapter 11 HWKi Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 7 Complete this question by entering your answers in the tabs below. Required A Required B 0.8 points Prepare a Schedule M-1, page 6, Form 1120, reconciling Cramer's book and taxable income. (Any Expenses (Line 5) and Deductions (Line 8) that are not included under Depreciation, Charitable Contributions, and Travel and Entertainment should be combined in the corresponding line item "Other". Enter all amounts as positive. Enter your answers in whole dollars not in millions.) Show less A Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions 1 Net income (loss) per books Income recorded on books this year not included on 2 Federal income tax per books this return (itemize) 3 Excess of capital losses over captial gains Tax-exempt interest 4 Income subject to tax not recorded on books this year (itemize) 0 0 5 Expenses recorded on books this year not deducted on Deductions on this return not charged against book this return (itemize): income this year (itemize): a Depreciation a Depreciation 6 Charitable contributions 6 Charitable contributions c Travel and entertainment c Other (include all items) d Other (include all items) 0 s / and a 6 Add lines 1 through 5 0 10 Income (page 1, line 28) - line 6 less line 9 THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. @ 2019 McGraw-Hill Education. Type here to search O e BA 30 w / ENG 2:11 PM 6/14/2020