Problem 11-13 (Static) (LO 11-3, 11-4) Western Corporation, a calendar year, accrual basis corporation, reported $500,000 of net income after tax on its financial statements prepared in accordance with GAAP. The corporation's books and records reveal the following information: Western's book income included $15,000 of dividends, received from a domestic corporation in which Western owns less than 1 percent of the outstanding stock. Western's depreciation expense per books was $55,000, and its MACRS depreciation was $70,000. Western earned $5,000 of interest from municipal bonds and $6,000 of interest from corporate bonds. Western's capital losses exceeded its capital gains by $2,000. Western's federal income tax expense per books was $103,000. Required: a. Compute Western's federal taxable income and regular tax liability. b. Prepare a Schedule M-1, page 6, Form 1120, reconciling Western's book and taxable income. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required A Required B Compute Western's federal taxable income and regular tax liability. (Enter your answers in whole dollars not in millions.) Amount Taxable income Tax liability O Screen capture now Screenshot taken Show in folder Problem 11-13 (Static) LO 11-3, 11-4) Corporation, a calendar year,coulis corporation, reported $500.000 pored in accordance the corporis books and recovere - West's book income included 18.000ftomadomes os was 55.000 MARS Wisms.000.000 We capitale dedin by 52.000 Wester's de expense per books was 5103.000. Required ) Required A Required B Prepare a Schedule M-1, page 6, Form 1120, reconciling Western's book and taxable income. (Any Expenses (Line 5) and Deductions (Line 8) that are not included under Depreciation, Charitable Contributions, and Travel and Entertainment should be combined in the corresponding line item "Other". Enter all amounts as positive. Enter your answers in whole dollars not in millions.) Show less A Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions 1 Net income (loss) per books 7 Income recorded on books this year not included on 2 Federal income tax per books this return (itemize): 3 Excess of capital losses over capital gains Tax-exempt interest 4 Income subject to tax not recorded on books this year (itemize): 5 Expenses recorded on books this year not deducted on 8 Deductions on this return not charged against book this return (itemize): income this year itemize): a Depreciation a Depreciation b Charitable contributions b Charitable contributions C Travel and entertainment c Other include items) d Other (include all items) 09 Add lines 7 and 8 6 Add lines 1 through 5 0 10 Income (page 1, line 28) - line 6 less line 9 0 0 0 0 TUIS ODMICA SIMULATION OF AN OCCICIALUSTAV ODM IT IS NOT TUE OCCICIAL ADMITCELE DO NOT USE TUIC EODM OD TAY CUINCS
