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Compute MV Corp.s 2019 taxable income given the following information relating to its year 1 activities. Also, compute MVs Schedule M-1 assuming that MVs federal income tax expense for book purposes is $100,000. Use Exhibit 16-6.

• Gross profit from inventory sales of $500,000 (no booktax differences).
• Dividends MV received from 25 percent-owned corporation of $100,000 (assume this is also MVs pro rata share of the distributing corporations earnings).
• Expenses other than DRD, charitable contribution (CC), and net operating loss (NOL), are $350,000 (no booktax differences).
• NOL carryover from 2018 of $10,000.
• Cash charitable contribution of $120,000.

• Compute MVs Schedule M-1 assuming that MVs federal income tax expense for book purposes is $100,000. (Enter all values as positive numbers.)

  Schedule M-1: Reconciliation of Income (Loss) per Books With Income per Return
  1.	Net income (loss) per books
  2.	Federal income tax per books
  3.	Excess of capital losses over capital gains
  4.	Income subject to tax not recorded on books this year (itemize)
  5.	Expenses recorded on books this year not deducted on this return (itemize):
  	a. Depreciation
  	b. Charitable contributions	120,000
  	c. Travel and entertainment
  6.	Total	120,000
  7.	Income recorded on books this yeat not included on this return (itemize):
  	Tax-exempt interest
  8.	Deductions on this return not charged against book income this year (itemize):
  	a. Depreciation
  	b. Charitable contributions
  10.	Income	$120,000