Cramer Corporation, a calendar year, accrual basis corporation, reported $1.40 million of net income after tax on its 2018 financial statements prepared in accordance with GAAP. The corporations books and records reveal the following information: Cramer's federal income tax expense per books was $208,000. Cramer's book income included $18,000 of dividends received from a domestic corporation in which Cramer owns a 25 percent stock interest, and $8,000 of dividends from a domestic corporation in which Cramer owns a 5 percent stock interest. Cramer recognized $18,000 of capital losses this year and no capital gains. Cramer recorded $12,000 of book expense for meals and $14,000 of book expense for entertainment costs. Cramer's depreciation expense for book purposes totaled $408,000. MACRS depreciation was $475,000. Compute Cramer's federal taxable income and regular tax liability. Prepare a Schedule M-1, page 5, Form 1120, reconciling Cramers book and taxable income.