The following information for 2019 relates to Sparrow Corporation, a calendar year, accrual method taxpayer:
| Net income per books (after-tax) | $205,050 | | Federal income tax per books | 55,650 | | Tax-exempt interest income | 4,500 | | MACRS depreciation in excess of straight-line depreciation used for financial accounting purposes | 7,200 | | Excess of capital losses over capital gains | 9,400 | | Nondeductible meals and entertainment | 5,500 | | Interest on loan to purchase tax-exempt bonds | 1,100 | |
b. Sparrow's taxable income for 2019 is $
c. Prepare Schedule M1 for 2019.
C. Prepare Schedule M-1 for 2019. Enter all amounts as positive numbers. If an amount is zero, enter "o". Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return 1 Net income (loss) per books ....... 7 Income recorded on books this year not included on this return (itemize): 2 Federal income tax per books. Tax-exempt interest $ 3 Excess of capital losses over capital gains ... ---- -------- -- -------- -- 4 Income subject to tax not recorded on books this year (itemize) ----- -- -- - - - - - - - - 8 Deductions on this return not charged against book income this year (itemize): - - - - - - - 5 Expenses recorded on books this year not deducted on this return (itemize): a Depreciation ...........$ b Charitable contributions .... $ 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............. C. Prepare Schedule M-1 for 2019. Enter all amounts as positive numbers. If an amount is zero, enter "o". Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return 1 Net income (loss) per books ....... 7 Income recorded on books this year not included on this return (itemize): 2 Federal income tax per books. Tax-exempt interest $ 3 Excess of capital losses over capital gains ... ---- -------- -- -------- -- 4 Income subject to tax not recorded on books this year (itemize) ----- -- -- - - - - - - - - 8 Deductions on this return not charged against book income this year (itemize): - - - - - - - 5 Expenses recorded on books this year not deducted on this return (itemize): a Depreciation ...........$ b Charitable contributions .... $ 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
