Cramer Corporation, a calendar year, accrual basis corporation, reported $1.80 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 $216,000. Cramer's book income included $26,000 of dividends received from a domestic corporation in which Cramer owns a 25 percent stock interest, and $12,000 of dividends from a domestic corporation in which Cramer owns a 5 percent stock interest. Cramer recognized $26,000 of capital losses this year and no capital gains. Cramer recorded $16,000 of book expense for meals not provided by a restaurant and $18,000 of book expense for entertainment costs. Cramer's depreciation expense for book purposes totaled $416,000. 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 A Compute Cramer's federal taxable income and regular tax liability. (Enter your answers in whole dollars not in millions.) Amount Taxable income $ 1,961,800 Tax liability $ 392 360