Question 30 (16 points) Schedule M-1: Prepare a Schedule M-1 based on the following information reported by Kirby Corp and report taxes paid. Kirby is a C Corp. -Kirby has Net Income per books of 1,000,000. -Kirby has tax expense of 120,000. -Kirby makes political contributions to Kirbo of 30,000. -Kirby bonus depreciates everything it can and has tax depreciation of 300,000 (book depreciation by comparison is 100,000) -Kirby accrues salary expense of 50,000 (they pay it every 2 weeks without fail). -Kirby increases its bad debt allowance by 30,000, while increasing bad debt expense by 30,000 as well. 10,000 of those debts have already been deemed certain to be uncollectable and have been written off, so Kirby thinks the estimate of 30,000 is fair. -Kirby engages in 100,000 R&D that is listed as 100% expensed on the books. For tax purposes it is amortized evenly over 5 years. -Kirby believes it is very probable it will lose a lawsuit. For book purposes Kirby accrues an expense of 300,000. -Kirby's CFO (a key officer), Dedede, dies. Kirby collects 200,000 of life insurance on the death of Dedede.