Eagle Corporation, a calendar year and accrual method taxpayer, provides the following information and asks you to prepare Schedule M-1 for 2014: Net income per books (after-tax) $386,250 Federal income tax per books 30,050 Tax-exempt interest income 5,000 Life insurance proceeds received as a result of death of corporate president 300,000 Nondeductible penalties 2,500 Interest on loan to purchase tax-exempt bonds 1,700 Excess of capital losses over capital gains 5,300 Premiums paid on life insurance policy on life of Eagle's president 4,200 Domestic production activities deduction 2,000 Excess of tax depreciation over book depreciation 3,000