E Weekly To Do List Fall 2 x SF eSantaFe | Santa Fe Col X SF McGraw Hill Connect X M Question 2 - TAX PROJI X About the School of Bus X | S Business Supporting Dc x | [S Business Supporting Dc x + F - C ezto.mheducation.com/ext/map/index.html?_con=con&external_brow Press (fn) F to exit full screen 52 Fne wconnect.mheducation.com%252F#/activit... Update TAX PROJECT i Saved Help Save & Exit Submit 2 Required information [The following information applies to the questions displayed below.] Part 2 of 5 XYZ is a calendar-year corporation that began business on January 1, 2023. For the year, it reported the following information in its current-year audited income statement. Notes with important tax information are provided below. Use Exhibit 16-6. 10 XYZ corporation Income statement For current year Book Income points Revenue from sale 40, 000, 000 Cost of Goods Sold (27, 000, 000) Gross profit $ 13, 000, Other income: eBook Income from investment in corporate stock 300, 0001 Interest income 20, 0002 Capital gains (losses) (4,000) Gain or loss from disposition of fixed assets 0003 References Miscellaneous income 50, 000 Gross Income $ 13, 369, 000 Expenses : Compensation (7,500, 000) 4 Stock option compensation (200, 000) 5 Advertising (1, 350, 000) Repairs and Maintenance (75, 000) Rent expense 22, 000) Bad Debt expense (41, 000) 6 Depreciation (1, 400, 000) 7 Warranty expenses (70, 000) 8 Charitable donations (500, 000) 9 Meals (36,000) Goodwill impairment (30, 000 ) 10 Organizational expenditures (44,000) 11 Other expenses (140, 000 ) 12 Total expenses $ (11, 408, 000) Income before taxes $ 1, 961, 000 Provision for income taxes (400, 000) 13 Net Income after taxes $ 1, 561, 000 Mc raw HillB Weekly To Do List Fall 2 X & c Sp eSantaFe | SantaFe Co. X | Sp McGraw Hill Connect X @& ezto.mheducation.com/ext/map/index.html?_con=con&external_brow [@ Question3-TAXPRO. X & About the School of Bu X S Business Supporting C X' S LR OR {V] R ) TAX PROJECT @ Saved wconnect.mheducation.com%252F#/activit... ) * 4 Help Save & Exit c. Complete XYZ's Schedule M-1. Note: Enter all amounts as positive numbers. Complete this question by entering your answers in the tabs below. Part3 of 5 Schedule M1 10 points Schedule M1 W Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions. eBook 1 Netincome (loss) per books 2 Federal income tax per books i 3 Excess of capital losses over capital gains References 4 Income subject to tax not recorded on books this year (itemize): 1,561,000(7 Income recorded on books this year not 400,000 included on this return (itemize): 4,000 Tax-exempt interest $ 12,000 Income from investment in Corp Stock 100,000 112,000 200,000 8 Deductions on this return not charged against book income this year (itemize): 5 Expenses recorded on books this year not deducted on this return (itemize). a Depreciation a Depreciation b Charitable contributions Other (itemize): b Charitable contributions Meals Other (itemize): Stock option compensation (incentive stock options) Bad debt expense Warranty expense Goodwill impairment Organizational expenditures L o 112,000 $ 876,000 |9 Add lines 7 and 8 112,000 6 Add lines 1 through 5 $ 3,041,000 [ 10 Income (page 1, line 28)line 6 less line 9 2,929,000 THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOI ANY PURPOSE OTHER THAN EDUCATIONAL. Source: irs.gov R TAX FILINGS OR FOR Business Supporting C X' + o0 Submit