You will need to look at the Most Common M-1s in this folder to figure out the rules on What is deductible for Tax and for Book (GAAP Financial Statements). You will then need to complete the attached M-1 schedule based on the information below. You should not need to add lines into the schedule. I have the formulas set up as well. You just need to figure out what goes on the lines and the amounts. You will turn it in via Blackboard. The following information for 20XX relates to Purple Corp, a calendar year, accrual method taxpayer. Net Income per books (after-tax) Excess of capital loss over capital gains Life insurance proceeds received as a result of death of corporate president Tax-exempt interest income Federal income tax per books Depreciation (amount deducted on GAAP financial statements) Depreciation (amount calculated for tax purposes under MACRS) Premiums paid on life insurance policy on life of Brown's president $1,325,000 15,600 1,000,000 8,000 50,250 225,000 500,500 10,500