Jackson Corporation is a calendar-year, accrual-basis taxpayer. It provides the following information for this year and asks you to prepare Schedule M-1. ?

Net income per books (after-tax)	$239,700
Taxable income	195,000
Federal income tax liability	59,300
Interest income from tax-exempt bonds	5,000
Interest paid on loan incurred to purchase tax-exempt bonds	2,000
Life insurance proceeds received as a result of death of Herons president	100,000
Premiums paid on policy on life of Herons president	4,500
Excess of capital losses over capital gains	2,000
Retained earnings at beginning of year	375,000
Cash dividends paid	90,000
Tax depreciation in excess of book depreciation	7,500

In your analysis, include the following:

An introduction

Schedule M-1 (dont forget to show your work)

Conclusion