Net capital loss 42,000 Federal income tax expense for books in 2020 500,000 Required: A. Reconcile book income to taxable income for UMPI Inc. Be sure to start with book income (financial statement income prepared using GAAP standards) and identify all of the adjustments necessary to arrive at taxable income. Debits (DR) will decrease book income and Credits (CR) will increase book income. B. Consider each book-tax difference as either permanent or temporary. C. Prepare the Schedule M-1 for UMPI, Inc. This schedule reconciles the book to tax before recognizing any Net Operating Losses (NOL) and the Dividends Received Deductions (DRD). This problem does not have either an NOL or DRD present in the problem. Key note: The left hand side of M-1 amounts are an addition to net income (loss) per books [Line 1] and the right hand side of M-1 amounts are subtracted from the net income (loss) per books [Line 1]. D. Complete page 1 of the Form 1120 up to line 31. Remember that the tax rate for Corporations for tax year 2020 is a flat tax of 21%. Net capital loss 42,000 Federal income tax expense for books in 2020 500,000 Required: A. Reconcile book income to taxable income for UMPI Inc. Be sure to start with book income (financial statement income prepared using GAAP standards) and identify all of the adjustments necessary to arrive at taxable income. Debits (DR) will decrease book income and Credits (CR) will increase book income. B. Consider each book-tax difference as either permanent or temporary. C. Prepare the Schedule M-1 for UMPI, Inc. This schedule reconciles the book to tax before recognizing any Net Operating Losses (NOL) and the Dividends Received Deductions (DRD). This problem does not have either an NOL or DRD present in the problem. Key note: The left hand side of M-1 amounts are an addition to net income (loss) per books [Line 1] and the right hand side of M-1 amounts are subtracted from the net income (loss) per books [Line 1]. D. Complete page 1 of the Form 1120 up to line 31. Remember that the tax rate for Corporations for tax year 2020 is a flat tax of 21%