Telestar, Inc. is an accrual method calendar year corporation. For 2020, the company reported financial statement income (after-tax) of $1,526,000. Telestar provided the following information related to its 2020 activities.

Revenue from sales	2,100,000
Cost of Goods Sold	-300,000
Gross profit	1,800,000
Other income
Life insurance proceeds from CEOs death	220,000
Interest income on tax-exempt bonds	40,000
Rental income	26,000
Gross Income	2,086,000
Expenses
Interest paid on loan to purchase tax-exempt bonds	-45,000
Net capital loss	-42,000
Depreciation	-24,000
Life insurance premiums	-20,000
Federal income tax expense	-500,000
Total expenses before charitable contribution, NOL, and DRD	-631,000
Income before charitable contribution, NOL, and DRD	1,455,000
Taxable income for charitable contribution limitation purposes	1,455,000
Charitable contributions	-180,000
Book Income	1,275,000

1. Compute Telestars income tax liability (show supporting calculations using Excel or other spreadsheet)
2. Complete Schedule M-1 for Telestar, Inc.