Cramer Corporation, a calendar year, accrual basis corporation, reported $1.70 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 $214,000. Cramer's book income included $24,000 of dividends received from a domestic corporation in which Cramer owns a 25 percent stock interest, and $11,000 of dividends from a domestic corporation in which Cramer owns a 5 percent stock interest. Cramer recognized $24,000 of capital losses this year and no capital gains. Cramer recorded $15,000 of book expense for meals not provided by a restaurant and $17,000 of book expense for entertainment costs. Cramer's depreciation expense for book purposes totaled $414,000. 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. Compute Cramer's federal taxable income and regular tax liability. (Enter your answers in whole dollars not in millions.) Taxable income Tax liability Amount 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 line item "Other". Enter all amounts as positive. Enter your answers in whole dollars not in millions.) 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 Net income (loss) per books 2 Federal income tax per books 3 Excess of capital losses over capital gains 4 Income subject to tax not recorded on books this year (Remize) 5. Expenses recorded on books this year not deducted on this return (temize): a Depreciation b. Chartable contributions c Travel and entertainment d Other (include all tems) 6 Add lines 1 through 5 7 Income recorded on books this year not included on this return (temize) Tax-exempt interest 0 0 Deductions on this return not charged against book income this year (temize) a Deprecation b Chartable contributions c Other (include all tems) 09 Add tines 7 and 8 0 10 Income (page 1, line 28)-ne 6 less line 9 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. 0 0 0 Show less A