1 Please explain what Book Tax Difference is 2 On the Schedule M 1 of Form 1120 (available on the IRS website) for Lorado Corporation On Schedule M 1, how to begin with book income and make adjustments to book income to arrive at taxable income from the following data the Schedule M 1 Net income per book (after tax) $181,230 Federal income tax expense per book $88,300 Tax exempt interest income $9,000 MACRS depreciation in excess of straight line depreciation $14,400 Excess of capital loss over capital gains $7,200 Nondeductible meals and entertainment $6,450 Interest on loan to purchase tax exempt bonds $1,100 3 Please explain the book tax income analysis, including an explanation of general concepts surrounding the calculation and information on their specific book tax differences

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Question: 1. Please explain what Book-Tax Difference is. 2. On the Schedule M-1 of Form 1120 (available on the IRS website) for Lorado Corporation. On Schedule

1. Please explain what Book-Tax Difference is.

2. On the Schedule M-1 of Form 1120 (available on the IRS website) for Lorado Corporation. On Schedule M-1, how to begin with book income and make adjustments to book income to arrive at taxable income from the following data the Schedule M-1:

Net income per book (after-tax): $181,230
Federal income tax expense per book: $88,300
Tax-exempt interest income: $9,000
MACRS depreciation in excess of straight-line depreciation: $14,400
Excess of capital loss over capital gains: $7,200
Nondeductible meals and entertainment: $6,450
Interest on loan to purchase tax-exempt bonds: $1,100

3. Please explain the book-tax income analysis, including an explanation of general concepts surrounding the calculation and information on their specific book-tax differences.

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