Muffler Corporation is an accrual basis, calendar-year C corporation. Prepare the 2021 Schedule M-1 adjustments to reconcile book income to taxable income, i.e., the amount and the effect ( + or -).

Net income per books	$850,000
Provision for Federal income taxes, $215,000
Municipal bond interest, $16,000
Muffler reported gains of $22,000 and losses of $26,000 from the sale of investments in its Other Revenues & Expenses section of its income statement.
Muffler received dividend income from 25%-owned corporations totaling $40,000.
During 2021, Muffler increased its allowance for uncollectible accounts by $30,000; actual bad debts written off in 2021 were $36,000.
Muffler reported depreciation for financial purposes of $175,000; MACRS, & 179 for the year was $160,000
Muffler acquired another corporation in 2015, paying $450,000 for goodwill. Muffler recorded a goodwill impairment loss of $100,000 for financial purposes in 2021.
In December 2021, Muffler received $40,000 as an advance payment for an order from a customer. Muffler reported the $40,000 as a liability (unearned income) on its balance sheet at 12/31/21.
In December 2020, Muffler received $25,000 as an advance payment for an order from a customer. Muffler reported the $25,000 as a liability (unearned income) on its balance sheet at 12/31/20 and as earned income in 2021.
In May 2021, Muffler paid a $12,000 fine to a local government for violating a local ordinance.
Taxable Income