EFG, a calendar year, accrual basis corporation, reported $479,900 net income after tax on its financial statements prepared in accordance with GAAP The corporations financial records reveal the following information EFG earned $10,700 on an investment in tax exempt municipal bonds EFGs allowance for bad debts as of January 1 was $21,000 Write offs for the year totaled $4,400, while the addition to the allowance was $3,700 The allowance as of December 31 was $20,300 On August 7, EFG paid a $6,000 fine to a municipal government for a violation of a local zoning ordinance EFGs depreciation expense per books was $44,200, and its MACRS depreciation deduction was $31,000 This is EFGs second taxable year In its first taxable year, it recognized an $8,800 net capital loss This year, it recognized a $31,000 Section 1231 gain on the sale of equipment This was EFGs only disposition of noninventory assets In its first taxable year, EFG capitalized $6,900 organizational costs for tax purposes and elected to amortize the costs over 180 months For book purposes, it expensed the costs EFGs federal income tax expense per books was $151,000 Compute EFGs taxable income and regular tax Prepare a Schedule M 1, page 6, Form 1120, reconciling EFGs book and taxable income Part A Compute EFGs taxable income and regular tax (Do not round any intermediate division Round your final answers to the nearest whole dollar amount Enter your answers in whole dollars not in millions Taxable income $639,400WRONG Regular tax $159,850WRONG Prepare a Schedule M 1, page 6, Form 1120, reconciling EFGs 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 Do not round any intermediate division )

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EFG, a calendar year, accrual basis corporation, reported $479,900 net income after tax on its financial statements prepared in accordance with GAAP. The corporations financial

EFG, a calendar year, accrual basis corporation, reported $479,900 net income after tax on its financial statements prepared in accordance with GAAP. The corporations financial records reveal the following information:

EFG earned $10,700 on an investment in tax-exempt municipal bonds.
EFGs allowance for bad debts as of January 1 was $21,000. Write-offs for the year totaled $4,400, while the addition to the allowance was $3,700. The allowance as of December 31 was $20,300.
On August 7, EFG paid a $6,000 fine to a municipal government for a violation of a local zoning ordinance.
EFGs depreciation expense per books was $44,200, and its MACRS depreciation deduction was $31,000.
This is EFGs second taxable year. In its first taxable year, it recognized an $8,800 net capital loss. This year, it recognized a $31,000 Section 1231 gain on the sale of equipment. This was EFGs only disposition of noninventory assets.
In its first taxable year, EFG capitalized $6,900 organizational costs for tax purposes and elected to amortize the costs over 180 months. For book purposes, it expensed the costs.
EFGs federal income tax expense per books was $151,000.

Compute EFGs taxable income and regular tax.
Prepare a Schedule M-1, page 6, Form 1120, reconciling EFGs book and taxable income.
Part A= Compute EFGs taxable income and regular tax. (Do not round any intermediate division. Round your final answers to the nearest whole dollar amount. Enter your answers in whole dollars not in millions.


Taxable income	$639,400WRONG
Regular tax	$159,850WRONG

Prepare a Schedule M-1, page 6, Form 1120, reconciling EFGs 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. Do not round any intermediate division.)