Dove Corporation’s financial statement for 2019 is as follows:

Gross profit	1,360,000
Interest income City bonds                                    $6,000 Corporate bonds                          3,000 U.S. Government bonds             1,000	10,000
Long-term capital gains	15,000
Long-term capital losses	(18,000)
Total income	1,367,000

Expenses
Salaries-officers	500,000
Salaries -clerical and sales	200,000
Taxes (state, local , and payroll)	25,000
Advertising	15,000
Rental expenses	120,000
Repairs and maintenance	50,000
Interest expenses: Loan to purchase city bonds   $10,000 Other business loans                   50,000	60,000
Depreciation* (depreciation for tax purpose is $45,000)	20,000
Premiums on life insurance on key employees	12,000
Total expenses	1,002,000
Net income before tax	365,000
Federal income tax	122,060
Net income per books	242,940

Report the Information on Schedule M-1 (please report items that need to be on M-1 for book-tax reconciliation) .

Items that added back to Net income per books		Items that subtract from Net income per books
Net income per book	$ 242,940
subtotal		Taxable income	359000

Answer rating: 100% (QA)

A B D 1 Dove Corporations Schedule M1 for the year ... View the full answer