Comprehensive Problem 5-56 (LO 5-1, LO 5-2, LO 5-3) Compute HC Inc.'s current-year taxable income given the following information relating to its 2019 activities. Also, compute HC's Schedule M-1 assuming that HC's federal income tax expense for book purposes is $30,000. Use Exhibit 16-6. Gross profit from inventory sales of $310,000 (no book-tax differences). Dividends HC received from 28 percent-owned corporation of $120,000 (this is also HC's pro rata share of the corporation's earnings). Expenses other than DRD, charitable contribution (CC), and net operating loss (NOL), are $300,000 (no book-tax differences). NOL carryover from prior year of $12,000. Cash charitable contribution of $50,000. Req 1 Req 2 Compute HC Inc.'s current year taxable income given the following information relating to its 2019 activities. (Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Description Book Income Book-tax adjustments (Dr) Cr (Dr) or Taxable income (Dr) Cr Gross profit Other income: Dividend income Gross Income Expenses: Business expenses other than DRD, CC, and NOL Federal income tax expense Total expenses before charitable contribution, NOL, and DRD deduction Income before charitable contribution, NOL and DRD NOL carryover from prior year Taxable income for charitable contribution limitation purposes (modified taxable income) Charitable contributions Taxable income before DRD Dividends received deduction (DRD) Book/Taxable income 0 $ 0 $ 0 $ Req 1 Req 2 Compute HC's Schedule M-1 assuming that HC's federal income tax expense for book purposes is $30,000. (Enter all values as positive numbers.) Schedule M-1: Reconciliation of Income (Loss) per Books With Income per Return 1. Net income (loss) per books 2. Federal income tax per books 3. Excess of capital losses over capital gains 4. Income subject to tax not recorded on books this year (itemize) 5. Expenses recorded on books this year not deducted on this return (itemize): a. Depreciation b. Charitable contributions c. Travel and entertainment 6. Total 7. Income recorded on books this yeat not included on this return (itemize): Tax-exempt interest 8. Deductions on this return not charged against book income this year (itemize): a. Depreciation b. Charitable contributions 9. Income