The following information for 2016 relates to Purple Corp, a calendar year, accrual method taxpayer.

Net Income per books (after-tax) $250,000

Federal income tax per books 122,250

Meals & Entertainment (amount deducted on GAAP financial statements) 8,400

Depreciation (amount deducted on GAAP financial statements) 145,000

Depreciation (amount calculated for tax purposes under MACRS) 130,000

Fine for Speeding tickets 6,250

Amortization (GAAP) 0

Amortization (Tax) 10,750

Country Club Dues 11,000

Accrued Vacation not deducted on 12/31/15 Return 15,000

Accrued Vacation @ 12/31/16 (7,500 paid by 3/15/17) 25,000

Allowance for Bad Debts on Balance Sheet @ 12/31/15 13,200

Allowance for Bad Debts on Balance Sheet @ 12/31/16 15,750

The M-1s for most of the Income Statement items (expenses) are just the amount of the expense, but for the Balance Sheet items we usually have to take the change in the value from the prior year to the current year. Find the taxable income, it should be $403,000

Find Taxable income on Form L and M1 (Excel is acceptable)