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

Luong Corporation, a calendar year, accrual basis corporation, reported $1 million of net income after tax on its financial statements prepared in accordance with GAAP. The corporations books and records reveal the following information:
Luongs federal income tax expense per books was $200,000.
Luongs book income included $10,000 of dividends received from a domestic corporation in which Luong owns a 25 percent stock interest, and $4,000 of dividends from a domestic corporation in which Luong owns a 5 percent stock interest.
Luong recognized $10,000 of capital losses this year and no capital gains.
Luong recorded $8,000 of book expense for meals not provided by a restaurant and $10,000 of book expense for entertainment costs.
Luong's depreciation expense for book purposes totaled $400,000. MACRS depreciation was $475,000.
Required:
Compute Luong's federal taxable income and regular tax liability.
Prepare a Schedule M-1, page 6, Form 1120, reconciling Luongs book and taxable income.

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