Question
You have been given the following information for Jesse Corporation, a calendar year, accrual basis taxpayer. REQUIRED : Use this information to prepare Jesse Corporation's
You have been given the following information for Jesse Corporation, a calendar year, accrual basis taxpayer.
REQUIRED: Use this information to prepare Jesse Corporation's 2022 Schedule M-1.
NOTE 1 - Fill in the actual M-1 below, clearly labeling your work and related line numbers, INCLUDING calculating lines 6 and 9. 8.
-Net income per book (after-tax) = 339,880
-100% of meals expense = 8,900
-Federal income tax liability = 51,652
-Interest income from tax-exempt bonds = 5,600
-Interest paid on loan incurred to purchase tax-exempt bonds = 2,100
-Life insurance proceeds received as a result of death of Jesse's CEO. = 179,000
-Premiums paid on policy on life of Jesse's CEO = 7,600
-Excess of capital losses over capital gains. = 16,000
-Nondeductible fines = 1,300
-Retained earnings at beginning of year = 361,500
-Cash dividends paid = 73,6000
-Book depreciation in excess of tax depreciation = 6,800
NOTE 2 - if more than one item needs to appear on an M-1 line, write "See below" on the line and detail your calculation for that line item below the M-1.
Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: Schedule M-3 required instead of Schedule M- 1 if total assets are $10 million or more - see instructionsStep by Step Solution
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