For the current tax year,Fannie Corporation,an Accrual Basis calendar year corporation,hadthe following information:

Net Income Per Books(after-tax)$725,550

Premiums On Life Insurance Policy On Its Key Employees*15,500

Excess Capital Losses 8,500

Excess Tax Depreciation 24,000

(MACRSDepreciation in excess ofFinancial Accounting(Book)

Depreciation)

Life Insurance Proceeds On Life Of Its Key Employees* 550,000

Rental Income Received In Current Tax Year100,000

($70,000Is Prepaid(Unearned Revenue)And Relates To Next Tax Year)

Tax-Exempt Interest IncomeOn Municipal Bonds 16,500

Expenses Related To Tax-Exempt Interest Income 5,500

Prepaid Rent(Unearned Revenue)Received And Properly Taxed

In Prior Tax Year But NotEarned For Financial Accounting120,000

Purposes Until Current Tax Year

Federal Income Tax liability For Current Tax Year30,450

*-FannieCorporation is the beneficiary of this Life Insurance Policy.

REQUIRED:

Using the Schedule M-1format,determine the Taxable Income for FannieCorporation for the current tax year.(Show computations)