see attached Required:a. Compute Cramer's federal taxable income and regular tax liability.b. Prepare a Schedule M-1, page 6, Form 1120, reconciling Cramer's book and taxable income.X Answer is not complete.Complete this question by entering your answers in the tabs below.Required ARequired BPrepare a Schedule M-1, page 6, Form 1120, reconciling Cramer's book and taxable income. (Any Expenses (Line 5) and Deductions (Line 8) thatare not included under Depreciation, Charitable Contributions, and Travel and Entertainment should be combined in the corresponding line item"Other". Enter all amounts as positive. Enter your answers in whole dollars not in millions.)Show lessaScheduleM-1Reconciliation of Income (Loss) per Books With Income per ReturnNote: The corporation may be required to file Schedule M-3. See instructions1,000,000 O 7 Income recorded on books this year not included on200,000 O10,000 O1 Net income (loss) per books2 Federal income tax per booksthis return (itemize):3 Excess of capital losses over capital gainsTax-exempt interest4 Income subject to tax not recorded on books thisyear(itemize):5 Expenses recorded on books this year not deducted8 Deductions on this return not charged against bookonthis return (itemize):income this year (itemize):a Depreciationb Charitable contributionsa Depreciation75,000 Ob Charitable contributions18,000 X75,00075,000c Travel and entertainmentc Other (include all items)d Other (include all items)6 Add lines 1 through 518,0001,228.0009 Add lines 7 and 810 Income (page 1, line 28) - line 6 less line 91.153.000THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM IT SELF. DO NOT USE THIS FORM FOR TAXFILINGS OR FOR ANY PURPO SE OTHER THAN EDUCATIONAL. © 2020 McGraw-Hill Education. Cramer Corporation, a calendar year, accrual basis corporation, reported $1 million of net income after tax on its 2020 financialstatements prepared in accordance with GAAP. The corporation's books and records reveal the following information:• Cramer's federal income tax expense per books was $200,000.Cramer's book income included $10,000 of dividends received from a domestic corporation in which Cramer owns a 25 percentstock interest, and $4,000 of dividends from a domestic corporation in which Cramer owns a 5 percent stock interest.Cramer recognized $10,000 of capital losses this year and no capital gains.• Cramer recorded $8,000 of book expense for meals and $10,000 of book expense for entertainment costs.• Cramer's depreciation expense for book purposes totaled $400,000. MACRS depreciation was $475,000.Required:a. Compute Cramer's federal taxable income and regular tax liability.b. Prepare a Schedule M-1, page 6, Form 1120, reconciling Cramer's book and taxable income.Complete this question by entering your answers in the tabs below.Required ARequired BCompute Cramer's federal taxable income and regular tax liability. (Enter your answers in whole dollars not in millions.)AmountTaxable incomeTax liability

Question

see attached Required:a. Compute Cramer's federal taxable income and regular tax liability.b. Prepare a Schedule M-1, page 6, Form 1120, reconciling Cramer's book and taxable income.X Answer is not complete.Complete this question by entering your answers in the tabs below.Required ARequired BPrepare a Schedule M-1, page 6, Form 1120, reconciling Cramer's book and taxable income. (Any Expenses (Line 5) and Deductions (Line 8) thatare not included under Depreciation, Charitable Contributions, and Travel and Entertainment should be combined in the corresponding line item&#34;Other&#34;. Enter all amounts as positive. Enter your answers in whole dollars not in millions.)Show lessaScheduleM-1Reconciliation of Income (Loss) per Books With Income per ReturnNote: The corporation may be required to file Schedule M-3. See instructions1,000,000 O 7 Income recorded on books this year not included on200,000 O10,000 O1 Net income (loss) per books2 Federal income tax per booksthis return (itemize):3 Excess of capital losses over capital gainsTax-exempt interest4 Income subject to tax not recorded on books thisyear(itemize):5 Expenses recorded on books this year not deducted8 Deductions on this return not charged against bookonthis return (itemize):income this year (itemize):a Depreciationb Charitable contributionsa Depreciation75,000 Ob Charitable contributions18,000 X75,00075,000c Travel and entertainmentc Other (include all items)d Other (include all items)6 Add lines 1 through 518,0001,228.0009 Add lines 7 and 810 Income (page 1, line 28) - line 6 less line 91.153.000THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM IT SELF. DO NOT USE THIS FORM FOR TAXFILINGS OR FOR ANY PURPO SE OTHER THAN EDUCATIONAL. © 2020 McGraw-Hill Education.< Required ARequired B > Cramer Corporation, a calendar year, accrual basis corporation, reported $1 million of net income after tax on its 2020 financialstatements prepared in accordance with GAAP. The corporation's books and records reveal the following information:• Cramer's federal income tax expense per books was $200,000.Cramer's book income included $10,000 of dividends received from a domestic corporation in which Cramer owns a 25 percentstock interest, and $4,000 of dividends from a domestic corporation in which Cramer owns a 5 percent stock interest.Cramer recognized $10,000 of capital losses this year and no capital gains.• Cramer recorded $8,000 of book expense for meals and $10,000 of book expense for entertainment costs.• Cramer's depreciation expense for book purposes totaled $400,000. MACRS depreciation was $475,000.Required:a. Compute Cramer's federal taxable income and regular tax liability.b. Prepare a Schedule M-1, page 6, Form 1120, reconciling Cramer's book and taxable income.Complete this question by entering your answers in the tabs below.Required ARequired BCompute Cramer's federal taxable income and regular tax liability. (Enter your answers in whole dollars not in millions.)AmountTaxable incomeTax liability

Accepted Answer

Taxable Income - It is an total income earn by the company or an individual used to calculate how…