Quest, Inc., is a calendar$-$year, accrual$-$basis C corporation engaged in manufacturing. The Year $2$ transactions from Quest's financial statements and tax records are provided. Enter the amounts to be reflected on Schedule M$-1,$ Reconciliation of Income $($Loss$)$ per Books with Income per Return, as an

adjustment to calculate federal taxable income in the associated cells below. Each transaction should be considered independently of the others. Enter increases to net income per books as positive, whole values increase and decreases to net income per books as negative, whole values using a leading minus $(-)$ sign. If the

amount is zero, enter a zero $(0).$

Year $2$ net income per books $=$ $$632,000$

Year $2$ Transactions Adjustments to calculate federal taxable income? Questions $7-10$

$7.$

MACRS depreciation: $$224,000$

Sec. $179$ deduction: $$16,000$

Book depreciation $$200,000$

$8.$ Quest declared and paid a $$40,000$ cash

dividend in June, Year $2,$ and declared a

$$30,000$ cash dividend in December, Year

$2,$ payable in January, Year $3.$

$9.$ $$30,000$ of cash contributions were paid

in Year $2,$ and $$10,000$ of charitable

contributions $($approved by the board of

directors$)$ to qualifying organizations were

accrued at the end of Year $2$ and paid on

the extended tax return filing date.

$10.$ Gains $($losses$)$ on sales of investments

in public companies recorded for book and

tax purposes:

Jan $15$ $$6,000$

May $15$ $$(4,000)$

July $16$ $$(8,000)$

Sept $25$ $$2,000$