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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
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 7,200 purposes Excess of capital loss over capital gains 9.400 Nondeductible meals and entertainment 5,500 Interest on loan to purchase tax-exempt bonds 1.100 (Prepare the M-1 using the table provided on the next page) Schedule M-1: Reconciliation of Income (Loss) per Books with Income per Return 1. Net income per books 7. Income recorded on books this year not included on this return (itemize): 2. Federal income tax per books 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): Depreciation $ Charitable contributions $ 5. Expenses recorded on books this year not deducted on this return (itemize): a. Depreciation b. Charitable contributions 9. Add lines 7 and 8 C. Travel and entertainment 6. Add lines 1 through 5 10. Income (page 1, line 28) - line 6 less line 9
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