Western Corporation, a calendar year, accrual basis corporation, reported $500,000 of net income after tax on its financial statements prepared in accordance with GAAP. The corporations books and records reveal the following information: Westerns book income included $15,000 of dividends, received from a domestic corporation in which Western owns less than 1 percent of the outstanding stock. Westerns depreciation expense per books was $55,000, and its MACRS depreciation was $70,000. Western earned $5,000 of interest from municipal bonds and $6,000 of interest from corporate bonds. Westerns capital losses exceeded its capital gains by $2,000. Westerns federal income tax expense per books was $103,000.

Required: Compute Westerns federal taxable income and regular tax liability.

oter 11 Saved Help Save & Exit work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate c Return to b. Prepare a Schedule M-1, page 6, Form 1120, reconciling Western's book and taxable income. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Compute Western's federal taxable income and regular tax liability. (Enter your answers in whole dollars not in millions Amount Taxable income $ 577,500 Tax liability $ 195,330