VI. SCHEDULE M-1 RECONCILIATION The following information for 2018 relates to Donegal Corporation, a calendar year, accrual method taxpayer. In the right-hand column, prepare a book-to-tax reconciliation of income (Schedule M-1). Be sure to show the sign teor) of your adjustments. Net income per books (after tax) $ 400,000 Federal income tax expense, $95,000 Donegal acquired another corporation in 2015, paying $900,000 for goodwill. In 2018, Donegal recorded a goodwill impairment loss of $50,000 on its financial statements. Interest income from tax-exempt bonds, $12,000 Capital loss from sale of investments, $6,000 In December of 2018, Donegal received $15,000 as an advance payment for an order from a customer. For financial statement purposes, Donegal reported the $15,000 as a liability (unearned Income) on its 12/31/18 balance sheet and as earned income on its 2019 income statement. Donegal received dividend income of $30,000 from Kerry Corporation. Donegal owns 15% of Kerry's outstanding common stock. Book depreciation was $80,000; MACRS and Sec. 179 deductions were $76,000 and $30,000, respectively. Premiums paid on policy on the life of the president of the corporation, $7,000. Donegal is the named beneficiary on the policy. Taxable income