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12. Cramer Corporation, a calendar year, accrual basis corporation, reported $1 million of net income after tax on its 2020 financial statements prepared in accordance with GAAP. The corporation's books and records reveal the following information: Cramer's federal income tax expense per books was $200,000. Cramer's book income included $10,000 of dividends received from a domestic corporation in which Cramer owns a 25 percent stock interest, and $4,000 of dividends from a domestic corporation in which Cramer owns a 5 percent stock interest. Cramer recognized $10,000 of capital losses this year and no capital gains. . Cramer recorded $8,000 of book expense for meals and $10,000 of book expense for entertainment costs. Cramer's depreciation expense for book purposes totaled $400,000. MACRS depreciation was $475,000. a. Compute Cramer's federal taxable income and regular tax liability. b. Prepare a Schedule M-1, page 6, Form 1120, reconciling Cramer's book and taxable income