Instructions:[1] Create an Excel spreadsheet to compute the taxpayers [a] book income, [b] taxable income,and [c] book/tax differences. Format your spreadsheet to print on a single page in a font large enough for easy reading. Be sure to label the information on your spreadsheet.[2] Using your Excel spreadsheet, prepare a 2022 Form 1120 [thru line 37] and Schedule M-1[p.6]. Find Form 1120 at www.irs.gov. You can complete these forms by hand as long as your handwriting is legible. Unreadableproject solutions will not be graded and will receive a score of zero. Do not attach other forms as required by certain lines of Form 1120.[3] Follow these directions to prepare your Project 2 solution for submission. Your solution should include no more than three pages, stapled together in this order:Form 1120 p.1, Form 1120 p.6, and a copy of your spreadsheet. Unstapled project solutions will not be graded and will receive a score of zero. Format your spreadsheet to print on one page in a font large enough for easy reading. Include your name in the upper right-hand corner of the first page of your solution.[4] Submit your solution no later than the start of class on the due date. As noted in the syllabus,a late penalty of 15% of the total possible points will be imposed for each 24 hours or portionthereof that a project is turned in after the submission deadline.Taxpayer Information:Buttler, Inc. is an accrual-basis, calendar-year wholesaler which was incorporated on May 13,2018. Its employer identification number is 31-4957632. Buttlers main office is located at15151 Exchange Street, Sycamore, IL 60178. Total assets as of December 31, 2022, sum to$9,642,900. Buttlers 2022 GAAP income statement reports the following: $3,326,000 of total sales for the year. Returns and allowances of $64,000 weresubsequently granted to customers who received goods that was damaged. $8,600 of interest income was received during the year from investments in corporatebonds. $4,200 was earned on OHare Airport District bonds. These bonds are consideredmunicipal bonds. ($22,700) loss on the sale of investment securities $14,000 gain on the sale of investment land $1,078,900 cost of goods sold $380,000 officers compensation $812,000 other salaries and wages

$147,300 federal income tax expense $147,400 depreciation expense $15,000 state income taxes $55,200 payroll taxes $6,900 interest expense $12,800 repairs $68,400 rent expense $21,500 advertising expense $38,300 bad debt expense $14,300 property insurance premiums $6,100 key-person life insurance premiums $17,500 business meals from restaurants $6,300 business meals not from restaurantsAdditional information is as follows: Buttlers financial reporting already reflects the capitalization of certain indirect costs toGAAP inventory this year (i.e., DR to Inventory, CR to certain period expenses). Tax lawrequires the following additional costs to be capitalized to tax-basis inventory:o $94,000 of other salaries and wageso $27,000 of rent expense NOTE combine and label these differences as UNICAP in Schedule M-1 Cost of goods sold for tax purposes is $1,212,400. MACRS depreciation totaled $185,900 for the year. C-suite bonuses of $38,000 are included in the accrued officers compensation. Thesebonuses will be paid out on April 1, 2023. For tax purposes, Buttler capitalized organizational costs of $11,250 incurred to incorporatethe business in 2018. These costs were expensed in 2018 for GAAP purposes. Accounts receivable totaling $47,600 were written off as uncollectible this year. Buttler received $22,500 of prepaid rent in late December 2022 from a company that willlease excess space in its largest warehouse from February 1 through October 30, 2023. The tax workpapers show a net operating loss carryforward of $114,600. Buttler made the following estimated income tax payments to the IRS for 2022:o 1st quarter $33,000o 2nd quarter 33,000o 3rd quarter 31,000o 4th quarter 30,000 Buttler does not qualify for any other tax credits in 2022. Any overpayment of 2022 tax should be credited to its 2023 estimated taxes