Information for an accrual basis corporation
Net income per books (after-tax)........................................... $174,100
Federal income tax expense per book........................................$86,600
Tax-exempt interest income......................................................$4,500
MACRS depreciation**.........................................................$7,200
Excess of capital loss over capital gains.......................................$9,400
Nondeductible meals and entertainment.......................................$5,500
Interest on loan to purchase tax-exempt bonds................................$1,100
** This is depreciation in excess of straight-line depreciation used for financial statement purposes.
Part II: M-2 Information for an accrual basis corporation
Net income per books (after-tax)..............................................$386,250
Taxable income...................................................................$120,000
Federal income tax per books)....................................................$30,050
Cash dividend distributions).....................................................$150,000
Unappropriated retained earnings, as of January 1, 2013)..................$796,010
Requirements:

Clearly identify the requirements being addressed by preparing Schedule M-1 and Schedule M-2 of Form 1120. Show all calculations within the cells of an Excel spreadsheet.

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Corporate Investment Income from operations $700,000 S800,000 S900,000 Expenses from operations 600,000) (S850,000) (910,000) Qualifying dividends Scenario l Scenario 2 Scenario 3 S100,000 S100,000 S100,000