The Following Income and expense accounts appeared in the book accounting records of Rocket Corporation,an accrual basis taxpayer, for the current calendar year.... (see attachment for data)

Part A.) Prepare a worksheet reconciling Rockets book income with its taxable income (before special deductions). Six columns should be used- two (one debit and one credit) for each of the following three major headings: book income, Schedule M-1 adjustments, and taxable income.

Part B.) Prepare a tax provision reconcilation as in Step 9 of the Tax Provision Process. Assume a 34% tax rate.

The Following Income and expense accounts appeared in the book accounting records of Rocket Corporation, an accrual basis taxpayer, for the current calendar year. Account Title Net Sales 1 Dividends 2 Interest 3 Gain on sale of stock Key-person life insurance proceeds Cost of goods sold Salaries and wages 4 Bad debts Payroll taxes 5 Interest expense 6 Charitable contributions 7 Depreciation 8 Other expenses Federal income taxes Net income Total Debit $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Credit 3,230,000.00 10,000.00 18,000.00 9,000.00 100,000.00 2,000,000.00 500,000.00 13,000.00 62,000.00 12,000.00 50,000.00 70,000.00 40,000.00 165,920.00 454,080.00 3,367,000.00 $ 3,367,000.00 1 Dividends were from Star Corporation, a 30% owned domestic corporation 2 Interest revenue consists of interest on coporate bonds, a $15000 and municipal bonds, $3000. 3 The stock is a capital asset held for three years prior to sale 4 Rocket uses specific writeoff method of accounting for bad debts. 5 Interest expense consists of $11000 interest incurred on funds bowrroed for working capital and $1000 interest on funds borrowed to purchase municipal bonds. 6 Rocket paid all contributions in cash during the current year to State University. 7 Rocket calculated depreciation per books using the straight-line method. For income tax purposes, depreciations amounted to $95000 8 Other expenses include premiums of $5000 on the key person life insurance policy covering Rockets president who died in December 9 Qualified productions activities income is $300,000 10 Rocket has a $90,000 NOL carryover from prior years. Rocket Corporation, Part A.) Prepare a worksheet reconciling Rockets book income with its taxable incom (one debit and one credit) for each of the following three major headings: book inc Part B.) Prepare a tax provision reconcilation as in Step 9 of the Tax Provision Proce ts book income with its taxable income (before special deductions). Six columns shoulw be used- two wing three major headings: book income, Schedule M-1 adjustments, and taxable income. in Step 9 of the Tax Provision Process. Assume a 34% tax rate