Cramer Corporation, a calendar year, accrual basis corporation, reported $1.60 million of net income after tax on its 2020 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 $212,000. Cramer's book income included $22,000 of dividends received from a domestic corporation in which Cramer owns a 25 percent stock interest, and $10,000 of dividends from a domestic corporation in which Cramer owns a 5 percent stock interest. . Cramer recognized $22,000 of capital losses this year and no capital gains. . Cramer recorded $14,000 of book expense for meals and $16,000 of book expense for entertainment costs. Cramer's depreciation expense for book purposes totaled $412,000. 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