Emerald Corporation, a calendar year and accrual method taxpayer, provides the following information and asks you to prepare Schedule M-1 for 2018:

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 losses over capital gains .......................................................................       6,000
Premiums paid on life insurance policy on life of Emerald's president ......................       7,800