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James Corporation, a calendar year, accrual basis taxpayer, provides the following information for this year and asks you to prepare Schedule M-2: Net income per

James Corporation, a calendar year, accrual basis taxpayer, provides the following information for this year and asks you to prepare Schedule M-2: Net income per books (after-tax) $539,950 Taxable income 220,000 Federal income tax liability 69,050 Interest income from tax-exempt bonds 9,000 Interest paid on loan incurred to purchase tax-exempt bonds 3,000 Life insurance proceeds received as a result of death of Jame's president 400,000 Premiums paid on policy on life of James president 12,000 Excess of capital losses over capital gains 5,000 Retained earnings at beginning of year 675,000 Cash dividends paid 90,000 Provide a schedule M-2 for James Corp

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