Information for an accrual basis corporation

Net income per books (after-tax)	$174,100
Federal income tax expense per books	$86,600
Tax-exempt interest income	$4,500
MACRS depreciation**	$7,200
Excess of capital loss over capital gains	$9,400
Nondeductible meals and entertainment	$5,500
Interest on loan to purchase tax-exempt bonds	$1,100

** This is depreciation in excess of straight-line depreciation used for financial statement purposes

Part II: 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
Inappropriate retained earnings, as of January 1, 2016	$796,010

Requirements:

Clearly identify the requirements being addressed.