Emerald Corporation, a calendar year and accrual method taxpayer, provides the following information and asks you to prepare Schedule M–1 for 2019:
Net income per books (after-tax) ....................................................................................$268,200
Federal income tax per books .............................................................................................31,500
Tax-exempt interest income ................................................................................................15,000
Life insurance proceeds received as a result of death of corporate president ..........150,000
Interest on loan to purchase tax-exempt bonds .................................................................1,500
Excess of capital loss over capital gains ................................................................................6,000
Premiums paid on life insurance policy on life of Emerald’s president .............................7,800