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EFG, a calendar year, accrual basis corporation, reported $$479,900$ net income after tax on its financial statements prepared in Complete this question by entering your answers in the tabs below.

Prepare a Schedule M$-1,$ page $6,$ Form $1120,$ reconciling EFG's book and taxable income.

Note: Any Expenses $($Line $5)$ and Deductions $($Line $8)$ that are 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. Do not round any intermediate division.

THIS FORM IS A SIMULATION OF AN OFFICIAL U$.$S$.$ TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS

OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. $2023$ McGraw$-$Hill Education.

accordance with GAAP. The corporation's financial records reveal the following information:

EFG earned $$10,700$ on an investment in tax$-$exempt municipal bonds.

EFG's allowance for bad debts as of January $1$ was $$21,000.$ Write$-$offs for the year totaled $$4,400,$ while the addition to the

allowance was $$3,700.$ The allowance as of December $31$ was $$20,300.$

On August $7,$ EFG paid a $$6,000$ fine to a municipal government for a violation of a local zoning ordinance.

EFG's depreciation expense per books was $$44,200,$ and its MACRS depreciation deduction was $$31,000.$

This is EFG's second taxable year. In its first taxable year, it recognized an $$8,800$ net capital loss. This year, it recognized a $$31,000$

Section $1231$ gain on the sale of equipment. This was EFG's only disposition of noninventory assets.

In its first taxable year, EFG capitalized $$6,900$ of organizational costs for tax purposes and elected to amortize the costs over $180$

months. For book purposes, it expensed the costs.

EFG's federal income tax expense per books was $$151,000.$

Required:

a$.$ Compute EFG's taxable income and regular tax.

b$.$ Prepare a Schedule M$-1,$ page $6,$ Form $1120,$ reconciling EFG's book and taxable income.

Complete this question by entering your answers in the tabs below.

Required A

Compute EFG's taxable income and regular tax.

Note: Do not round any intermediate division. Round your final answers to the nearest whole dollar amount. Enter your

answers in whole dollars not in millions.

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