Cramer Corporation, a calendar year, accrual basis corporation, reported $1.85 million of net income after tax on its 2019 financial statements prepared in accordance with GAAP. The corporations books and records reveal the following information:

Cramer's federal income tax expense per books was $217,000.

Cramer's book income included $27,000 of dividends received from a domestic corporation in which Cramer owns a 25 percent stock interest, and $12,500 of dividends from a domestic corporation in which Cramer owns a 5 percent stock interest.

Cramer recognized $27,000 of capital losses this year and no capital gains.

Cramer recorded $16,600 of book expense for meals and $18,500 of book expense for entertainment costs.

Cramer's depreciation expense for book purposes totaled $417,000. MACRS depreciation was $475,000.

Compute Cramer's federal taxable income and regular tax liability. Prepare a Schedule M-1, page 6, Form 1120, reconciling Cramers book and taxable income

Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may required to file Schedule M-3. See instructions. 1 Net income (loss) per books 7 Income recorded on books this year not included on 2 Federal income tax per books this return (itemize): 3 Excess of capital losses over captial gains Tax-exempt interest: 4 Income subject to tax not recorded on books this year (itemize) 5 Expenses recorded on books this year not deducted on Deductions on this return not charged against book this return (itemize): income this year (itemize): a Depreciation a Depreciation b Charitable contributions b Charitable contributions C Travel and entertainment C Other (include all items) d Other (include all items) 9 Add lines 7 and 8 6 Add lines 1 through 5 10 Income (page 1, line 28) - line 6 less line 9 Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may required to file Schedule M-3. See instructions. 1 Net income (loss) per books 7 Income recorded on books this year not included on 2 Federal income tax per books this return (itemize): 3 Excess of capital losses over captial gains Tax-exempt interest: 4 Income subject to tax not recorded on books this year (itemize) 5 Expenses recorded on books this year not deducted on Deductions on this return not charged against book this return (itemize): income this year (itemize): a Depreciation a Depreciation b Charitable contributions b Charitable contributions C Travel and entertainment C Other (include all items) d Other (include all items) 9 Add lines 7 and 8 6 Add lines 1 through 5 10 Income (page 1, line 28) - line 6 less line 9