55. Compute MV Corp.’s 2019 taxable income given the following information relating to its year 1 activities. Also, compute MV’s Schedule M-1 assuming that MV’s federal income tax expense for book purposes is $100,000.

Gross profit from inventory sales of $500,000 (no book–tax differences).

Dividends MV received from 25 percent-owned corporation of

$100,000 (assume this is also MV’s pro rata share of the distributing corporation’s earnings).

Expenses other than DRD, charitable contribution (CC), and net operating loss (NOL) are $350,000 (no book–tax differences).

NOL carryover from 2018 of $10,000.

Cash charitable contribution of $120,000.