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. This assignment is due Monday (same date and time all homework assignments are due). 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) $175,000 Federal income tax per books 42,250 Tax-exempt interest income 10,250 Life insurance proceeds received as a result of death of corporate president 102,000 Excess of capital loss over capital gains 6,000 Premiums paid on life insurance policy on life of Browns president 7,800 Depreciation (amount deducted on GAAP financial statements) 126,500 Depreciation (amount calculated for tax purposes under MACRS) 139,500