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Cramer Corporation, a calendar year, accrual basis corporation, reported $1.10 million of net income after tax on its financial statements prepared in accordance with GAAP.

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Cramer Corporation, a calendar year, accrual basis corporation, reported $1.10 million of net income after tax on its 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 $202,000. - Cramer's book income included $12,000 of dividends received from a domestic corporation in which Cramer owns a 25 percent stock interest, and $5,000 of dividends from a domestic corporation in which Cramer owns a 5 percent stock interest. - Cramer recognized $12,000 of capital losses this year and no capital gains. - Cramer recorded $9,000 of book expense for meals not provided by a restaurant and $11,000 of book expense for entertainment costs. - Cramer's depreciation expense for book purposes totaled $402.000. MACRS depreciation was $475,000. Required: a. Compute Cramer's federal taxable income and regular tax liablity b. Prepare a Schedule M-1, page 6 , Form 1120 , reconciling Cramet's book and taxable income, Complete this question by entering your answers in the tabs below. Required: a. 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. Complete this question by entering your answers in the tabs below. Compute Cramer's federal taxable income and regular tax liability. (Enter your answers in whole dollars not in millions.) Prepare a Schedule M-1, page 6, Form 1120, reconciling Cramer's book and taxable incomn. (Any Expenses (Line 5 ) and Deductions (tune B) that are not included under Depreciation, Charitable Contributions, and Trovel and Entertainment should be combined in the corresponding line item "Other". Entor all amounts as positive. Enter your answers in whole dollers not in millions.) Shew iessa DR FOR ANY PURPOSE OTHER THANEDUCATIONAL. 2021 McCray Hi Education

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