The following information for 2018 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 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 12/31/17 Return 15,000 Accrued Vacation @ 12/31/18 (7,500 paid by 3/15/19) 25,000 Allowance for Bad Debts on Balance Sheet @ 12/31/17 13,200 Allowance for Bad Debts on Balance Sheet @ 12/31/18 15,750

Based on the above information, use Schedule M-1 (on page 5 of Form 1120) for Purple Corp. and upload the Schedule M-1

Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions. 1 Net income (loss) per books. .. 2 Federal income tax per books 3 Excess of capital losses over capital gains 4 Income subject to tax not recorded on books Income recorded on books this year not included on this return (itemize) Tax-exempt interest$ 7 this year (itemize): 8 Deductions on this return not charged against book income this year (itemize): 5 Expenses recorded on books this year not a Depreciation..S b Charitable contributions $ 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