Cramer Corporation, a calendar year, accrual basis corporation, reported $1.55 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 $211,000. Cramer's book income included $21,000 of dividends received from a domestic corporation in which Cramer owns a 25 percent stock interest, and $9,500 of dividends from a domestic corporation in which Cramer owns a 5 percent stock interest. Cramer recognized $21,000 of capital losses this year and no capital gains. Cramer recorded $13,600 of book expense for meals and $15,500 of book expense for entertainment costs. Cramer's depreciation expense for book purposes totaled $411,000. MACRS depreciation was $475,000. 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. Cramer Corporation, a calendar year, accrual basis corporation, reported $1.55 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 $211,000. Cramer's book income included $21,000 of dividends received from a domestic corporation in which Cramer owns a 25 percent stock interest, and $9,500 of dividends from a domestic corporation in which Cramer owns a 5 percent stock interest. Cramer recognized $21,000 of capital losses this year and no capital gains. Cramer recorded $13,600 of book expense for meals and $15,500 of book expense for entertainment costs. Cramer's depreciation expense for book purposes totaled $411,000. MACRS depreciation was $475,000. 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