Problem 3-54 (LO. 5) Emerald Corporation, a calendar year and accrual method taxpayer, provides the following information and asks you to prepare Schedule M-1 for 2020: Net income per books (after-tax) $268,200 Federal income tax per books 31,500 Tax-exempt interest income 15,000 Life insurance proceeds received as a result of death of corporate president 150,000 Interest on loan to purchase tax-exempt bonds 1,500 Excess of capital losses over capital gains 6,000 Premiums paid on life insurance policy on life of Emerald's president 7,800 b. What is the taxable income after the M-1 adjustments are made? $ C. Prepare Schedule M-1 for 2020. Enter all amounts as positive numbers. If an amount is zero, enter "o". Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return 1 Net income (loss) per books .. 7 Income recorded on books this year not included on this return (itemize): 2 Federal income tax per books. Tax-exempt interest $ 3 Excess of capital losses over capital gains 4 Income subject to tax not recorded on books this year (itemize): 8 Deductions on this return not charged against book income this year (itemize): a Depreciation ... b Charitable contributions. $ 5 Expenses recorded on books this year not deducted on this return (itemize): a Depreciation ... b Charitable contributions ... $. c Travel and entertainment. - $ 9 Add lines 7 and 8. 10 Income (page 1, line 28)-line 6 less line 9 6 Add lines 1 through 5