Please prepare the M-1 Book/Tax Reconciliation for the following example using the attached M-1 Schedule.

ABC Corporation a calendar year C corporation has Net loss for books at year-end of $1,000,000 and has the following activity on the books:

1) Federal Income Tax ($300,000)

2) NYS Income Tax- $45,000

3) Supplies- $20,000

4) M & E - $75,000

5) DPAD- $65,000

6) OLI- $47,000

7) Proceeds from insurance $101,000

8) A/R Reserve decrease $40,000

9) Sec 263A increase $100,000

10) Tax Depreciation $150,000

11) Book Depreciation $75,000

12) Tax exempt interest $200,000

Form 1120 (2014) Page 5 Balance Sheets per Books Beginning of tax year End of tax year Assets 1 Cash 2a Trade notes and accounts receivable b Less allowance for bad debts 3 Inventories .. 4 U.S. government obligations 5 Tax-exempt securities (see instructions) . 6 Other current assets (attach statement) . 7 Loans to shareholders.. 8 Mortgage and real estate loans.. Other investments (attach statement) . 10a Buildings and other depreciable assets. b Less accumulated depreciation 11a Depletable assets b Less accumulated depletion. 12 Land (net of any amortization) 13a Intangible assets (amortizable only)... b 14 15 Less accumulated amortization Other assets (attach statement). Total assets Liabilities and Shareholders' Equity 16 Accounts payable 17 Mortgages, notes, bonds payable in less than 1 year 18 Other current liabilities (attach statement) . 19 Loans from shareholders 20 Mortgages, notes, bonds payable in 1 year or more 21 Other liabilities (attach statement).. . 22 Capital stock: a Preferred stock b Common stock.. 23 Additional naid-in canital