Prepare an M-1 reconciliation (what is taxable income?) for JJB Corporation using the following data:

Net income per books (after tax)	100,000
Federal income tax per books	30,000
Excess of capital losses over capital gains	15,000
Dividend income (Polk owns 1% of the paying corporation)	20,000
Nondeductible penalties	7,000
Marketing expense	16,000
Meals and Entertainment expense (total amount)	24,000
Tax-exempt interest income (private activity bond)	11,000
Excess of tax (MACRS) deprecation over book (GAAP) depreciation	35,000
Domestic Production Activities Deduction	25,000