Problem 11-8 Schedule M-1 (LO 114) The Loquat Corporation has book income of $50,000 for the current year. Included in this figure are the following items which are reported on the corporation's Schedule 1-3 Reconciliation of Income (Loss) per Books with Income per Return Federal income tax expense 57.500 Depreciation deducted on the books which is not deductie 10,000 for the purposes Deduction for 50 percent of mais expense which is 5.500 wed for tax purposes Deduction for entertainment not lowed to exposes 2,000 .-pt interest income included in book income but 4200 notinta corte Calot Loquat Corporation's taxable income for the current years on the formation 57,750X