1. Hank Corporation, a calendar year, accrual basis C corporation taxpayer that is owned 100% by its sole shareholder Mary Wolfing, provides the following information to you for the current year (2019) tax return Form 1120 due 7/15/20, and asks you to prepare Schedule M-1 in order to determine what amount would show up on LINE 28 of the FORM 1120. Please do this.

Net income per books (after-tax)		$258,050
Taxable income Line 30 of Form 1120		243,500
Federal income tax liability on the financial statements		60,950
Interest income from tax-exempt bonds		5,000
Interest paid on loan incurred to purchase tax-exempt bonds		2,000
Fines paid		100,000
Excess of capital losses over capital gains	3,000
Cash dividends received from 1% stake in Apple Inc stock	380,000
Cash dividends paid	90,000
Tax depreciation in excess of book depreciation	15,500