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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.