InterTax Inc.
INCOME STATEMENT
For the Year Ended December 31, 2019
	Tax	Book
Income
Consulting fees	1,880,000	1,880,000
Tax-exempt interest	0	2,400
Interest income on bank accounts	16,400	16,400
Total income	1,896,400	1,898,800
Expenses
Organization expenses	5,707	15,600
Office salaries	800,000	800,000
Salaries and wages	240,000	240,000
Rent	76,800	76,800
Utilities	12,000	12,000
Advertising	30,000	30,000
Repairs	2,000	2,000
Taxes	10,000	10,000
Employee benefits	2,000	2,000
Interest	10,000	10,000
Office supplies	7,000	7,000
Depreciation	75,200	30,400
Total expenses	1,270,707	1,235,800
Net income before charitable contributions	625,693	663,000
Charitable contributions	62,569	80,000
Pre-tax income	563,124	583,000
Federal tax expense	118,256	122,430
Net income	444,868	460,570

InterTax Inc., a calendar year C corporation, began operations on January 1, 2019. Based on the income statement provided, complete Schedule M-1, Reconciliation of Income (Loss) per Books With Income per Return, of Form 1120, U.S. Corporate Income Tax Return, for InterTax's first year of operations.In the table below, enter additions as positive whole numbers and subtractions as negative whole numbers. If an amount is zero, enter a zero (0).

	A	B
1	Net income per books
2	Federal income tax per books
3	Depreciation recorded on books not deducted on the return
4	Charitable contributions recorded on books not deducted on the return
5	Other expenses recorded on books not deducted on the return
6	Tax-exempt interest
7	Depreciation deducted on the return not expensed on the books
8	Taxable income per tax return	$0

Note: There were no shareholder distributions during the year.