19. On January 1, 2019, Hansbrough Corporation has unappropriated retained earnings per its books of $980,000. During the year, it reports net income of $411,300 and taxable income on its tax return of $380,000. On the tax return, it shows a dividends received deduction of $120,000. Federal income taxes for the year were $129,200. Because Hansbrough took accelerated depreciation deductions on its machinery, its taxable income included $5,000 more in gain from the sale of the machinery than its net income included. The corporation's tax depreciation exceeds its book depreciation by $32,000. During the year, the corporation received $25,000 in tax-exempt interest and paid $9,500 in interest on a loan obtained to purchase the tax-exempt bonds. The corporation also received $10,000 from a life insurance policy naming the corporation as the beneficiary. These three items are reflected in net income but not in taxable income. The corporation made charitable contributions that exceeded the 10-percent limitation by $12,000. During 2019, Hansbrough paid a cash dividend of $120,000 and transferred $300,000 from its unappropriated retained earnings per books to its appropriated retained earnings per books to cover an unsettled tort claim. Using this information, complete Schedule M-1 for the corporation. Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return 1. Net income (loss) per books 2. Federal income tax per books 3. Excess of capital losses over capital gains 4. Income subject to tax not recorded on books this year (itemize) Expenses recorded on books this year not deducted on this return (itemize): 5. a. Depreciation b. Charitable contributions C. Travel and entertainment Add lines 1 through 5 Income recorded on books this year not included on this return (itemize): 6. 7. Tax-exempt interest 8. Deductions on this return not charged against book income this year (itemize): Depreciation Charitable contributions a. b. $. 9. Add lines 7 and 8 Line 6 minus line 9. The result should be the same as taxable income before any NOL or dividends received deductions 10.