Luong Corporation, a calendar year, accrual basis corporation, reported $ 1 1 5 million of net income after tax on its financial statements prepared in accordance with GAAP The corporation's books and records reveal the following information Luong's federal income tax expense per books was $ 2 0 3 , 0 0 0 Luong's book income included $ 1 3 , 0 0 0 of dividends received from a domestic corporation in which Luong owns a 2 5 percent stock interest, and $ 5 , 5 0 0 of dividends from a domestic corporation in which Luong owns a 5 percent stock interest Luong recognized $ 1 3 , 0 0 0 of capital losses this year and no capital gains Luong recorded $ 9 , 6 0 0 of book expense for meals not provided by a restaurant and $ 1 1 , 5 0 0 of book expense for entertainment costs Luong's depreciation expense for book purposes totaled $ 4 0 3 , 0 0 0 MACRS depreciation was $ 4 7 5 , 0 0 0 Required a Compute Luong's federal taxable income and regular tax liability b Prepare a Schedule M 1 , page 6 , Form 1 1 2 0 , reconciling Luong's book and taxable income Complete this question by entering your answers in the tabs below Compute Luong's federal taxable income and regular tax liability Note Enter your answers in whole dollars not in millions

Question

Luong Corporation, a calendar year, accrual basis corporation, reported $ 1   1 5 million of net income after tax on its financial statements prepared in accordance with GAAP  The corporation's books and records reveal the following information  Luong's federal income tax expense per books was $ 2 0 3 , 0 0 0   Luong's book income included $ 1 3 , 0 0 0 of dividends received from a domestic corporation in which Luong owns a 2 5 percent stock interest, and $ 5 , 5 0 0 of dividends from a domestic corporation in which Luong owns a 5 percent stock interest  Luong recognized $ 1 3 , 0 0 0 of capital losses this year and no capital gains  Luong recorded $ 9 , 6 0 0 of book expense for meals not provided by a restaurant and $ 1 1 , 5 0 0 of book expense for entertainment costs  Luong's depreciation expense for book purposes totaled $ 4 0 3 , 0 0 0   MACRS depreciation was $ 4 7 5 , 0 0 0   Required  a   Compute Luong's federal taxable income and regular tax liability  b   Prepare a Schedule M   1 , page 6 , Form 1 1 2 0 , reconciling Luong's book and taxable income  Complete this question by entering your answers in the tabs below  Compute Luong's federal taxable income and regular tax liability  Note  Enter your answers in whole dollars not in millions

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Luong Corporation, a calendar year, accrual basis corporation, reported $ 1 . 1 5 million of net income after tax on its financial statements prepared

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