Cramer Corporation, a calendar year, accrual basis corporation, reported $110 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 or book expense for entertainment Cramer's depreciation expense for book purposes totaled $402,000. MACRS depreciation was $475,000 costs 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. Required A Required Compute Cramer's federal taxable income and regular tax liability. (Enter your answers in whole dollars not in milions.) Amount Taxable income Tax liability Recured Required > . 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 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. Required A Required B Prepare a Schedule M-1, page 6, Form 1120, reconciling Cramer's book and taxable income. (Any Expenses (Line 5) and Deductions (Une B) that are not included under Deprecation, 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 Schedule M1 Reconciliation of income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. Se instructions No come per nomerecedono a year of cred on 2 Federal income tax perb this roumanie) Sumaar amplias pan Yee 4 nome subject to not recorded on books this year Omu) 5 Es recorded on this year not deducted on Denonem of charged against book this rem) income is your me Depreciation Deprecation Charitable contribution Charitable contribution Travel and startet Other income Onclude a tems) Addins and Anthrough 10 Incone page 1. in 20) nesina 9 THIS FORM IS A SIMULATION OF AN OFFICIAL US. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELE DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL 2021 Merwe Education could
