****Prepare Corporate Schedule M-1 using the information below:

Sales - $1, 000,000; Operating Expenses - $400,000 Book Depr. $50,000; Tax Depr- $70,000 & Sec. 179 - 50,000

Federal Tax Expense per Books = 110,000

Included in Operating Expenses is $10,000 of Meals & Entertainment.

Net income (loss) per books =????

Income included on Schedule K, lines 1, 2, 3c, 4, 5a, 6, 7, 8a, 9, and 10, not recorded on books this year (itemize)

3 Expenses recorded on books this year not included on Schedule K, lines 1 through 12 and 14p (itemize): A Depreciation $?????

b Travel and entertainment $?????

4 Add lines 1 through 3 . . ??????. . . ..

5 Income recorded on books this year not included on Schedule K, lines 1 through 10 (itemize): A Tax-exempt interest $?????

6 Deductions included on Schedule K, lines 1 through 12 and 14p, not charged against book income this year (itemize): A Depreciation $?????

7 Add lines 5 and 6 . . . ??????. . ..

8 Income (loss) (Schedule K, line 18). Line 4 less line 7 . . .?????? . . ..