Please show how to do this in Excel (with formulas). Thank you!

You will need to look at the Most Common M-1s to figure out the rules on What is deductible for Tax and for Book (GAAP Financial Statements). You will then need to complete the attached M-1 schedule based on the information below.

The following information for 20XX relates to Purple Corp, a calendar year, accrual method taxpayer.

Net Income per books (after-tax) $1,325,000 Excess of capital loss over capital gains 15,600 Life insurance proceeds received as a result of death of corporate president 1,000,000 Tax-exempt interest income 8,000

Federal income tax per books 50,250

Depreciation (amount deducted on GAAP financial statements) 225,000 Depreciation (amount calculated for tax purposes under MACRS) 500,500

Premiums paid on life insurance policy on life of Browns president 10,500