Fill in a M-1 and label your work and related line numbers.

If more than one item appears on a M-1 line, write "see below" on the line and detail your calculation for that line below the M-1.

Net income per books (after tax)	$350,000
100% of meals expense	4,100
Federal income tax liability	53,052
Interest income from tax exempt bonds	2,200
Interest paid on loan incurred to purchase tax-exempt bonds	1,000
Life insurance proceeds received as a result of death of CEO	160,000
Premiums paid on policy on life of CEO	4,950
Excess capital losses over capital gains	6,300
Nondeductible fines	1,500
Retained earnings at beginning of year	339,000
Cash dividends paid	60,100
Book depreciation in excess of tax depreciation	4,000

Fill out and show all work.

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. 7 Income recorded on books this year 2 Federal income tax per books not included on this return (itemize): 3 Excess of capital losses over capital gains Tax-exempt interests 4 Income subject to tax not recorded on books this year (itemize): Deductions on this return not charged 5 Expenses recorded on books this year not against book income this year (itemize): deducted on this return (itemize): a Depreciation $ a Depreciation $ b Charitable contributions $ b Charitable contributions. $ c Travel and entertainment. $ Add lines 7 and 8 Add lines 1 through 5 Income (page 1, line 28) --line 6 less line 9 9 10 6 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. 7 Income recorded on books this year 2 Federal income tax per books not included on this return (itemize): 3 Excess of capital losses over capital gains Tax-exempt interests 4 Income subject to tax not recorded on books this year (itemize): Deductions on this return not charged 5 Expenses recorded on books this year not against book income this year (itemize): deducted on this return (itemize): a Depreciation $ a Depreciation $ b Charitable contributions $ b Charitable contributions. $ c Travel and entertainment. $ Add lines 7 and 8 Add lines 1 through 5 Income (page 1, line 28) --line 6 less line 9 9 10 6