Cramer Corporation, a calendar year, accrual basis corporation, reported $1.50 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 $210,000 Cramer's book income included $20,000 of dividends received from a domestic corporation in which Cramer owns a 25 percent stock interest, and 59,000 of dividends from a domestic corporation in which Cramer owns a 5 percent stock interest Cramer recognized $20,000 of capital losses this year and no capital gains. Cramer recorded $13,000 of book expense for meals not provided by a restaurant and $15,000 of book expense for entertainment costs Cramer's depreciation expense for book purposes totaled $410,000. 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 (line 8) that are not included under Depreciation, Charitable Contributions, and Travel and Entertainment should be combined in the corresponding In Item "Other". Enter all amounts as positive. Enter your answers in whole dollars not in millions.) Show less 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 Not income foss) per books Income recorded on books this year not included on 2 Federal income tax per books thuis return (itemize 3 Excess of capital losses over capital gains Tax-compt interest 0 4 Income subject to tax not recorded on books this year mize 0 5 Expenses recorded on books this year not deducted on B Deductions on this retum not charged against book this return tomize income this year (ca) Depreciation a Depreciation Charitable contributions b Charitable contributions Travel and entertainment c Other include aliams) d Other include all home) 09 Add lines 7 and 8 6 Addnes 1 through 5 0 10 Income (page 1. Ine 28) - Ineless line 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, 2021 McGraw-Hill Education, Too Required A Required B