Part A

Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Cramer Corporation, a calendar year, accrual basis corporation, reported $1.50 million of net income after tax on its 2018 financial statements prepared in accordance with GAAP The corporation's books and records reveal the following information: 5 points Cramer's federal income tax expense per books was $210,000. hich Cramer owns a 25 percent domestic stock interest, and $9,000 of dividends from a domestic corporation in which Cramer owns a 5 percent stock interest. Cramer recognized $20,000 Cramer recorded $13,000 of book expense for meals and $15,000 of book expense for entertainment costs. Cramer's depreciation expense for book purposes totaled $410,000. MACRS depreciation was $475,000. capital losses this year and no capital gains. a. Compute Cramer's federal taxable income and regular tax liability. b. Prepare a Schedule M-1, page 5, Form 1120, reconciling Cramer's book and taxable income. Answer not complete. the tabs below. Complete this question by entering your answers Required B Required A Compute Cramer's federal taxable income and regular tax liability. (Enter your answers in whole dollars not millions.) 1,642,700 Taxable income Tax liability S 1,730,000 Required A Required B> LO