M-2 Information for an accrual basis corporation

Net income per books (after-tax)	$386,250
Taxable income	$120,000
Federal income tax per books	$30,050
Cash dividend distributions	$150,000
Unappropriated retained earnings, as of January 1, 2013	$796,010

Requirements:

Clearly identify the requirements being addressed by preparing Schedule M-2 of Form 1120.

Schedule M-2 Ana of Unappropriated Retained Earninge per Booke (Line 25, Schedule L 1 Balance at beginning of year 5 Distributions a Cash 2 Net income (loss) per books b Stock o Property 3 Other increases (itenize 6 Other decreases (itemize 7 Add lines 5 and 6 4 Add lines 1, 2, and 3 8 Balance at end of ne 4 less line