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Problem 3-55 (LO. 5) The following information for 2019 relates to Sparrow Corporation, a calendar year, accrual method taxpayer: $205,050 55,650 4,500 Net income per books (after-tax) Federal income tax per books Tax-exempt interest income MACRS depreciation in excess of straight-line depreciation used for finandal purposes Excess of capital losses over capital gains Nondeductible meals and entertainment Interest on loan to purchase tax-exempt bonds 3,200 9,400 S.S00 1,100 a. Regarding items that would be added back on the M-1 schedule, label either "Yes" (it would be added back to net income per books or "No" (it would not be). Federal income tax per books Excess of capital loss over capital gains Tax-exempt interest income Excess of MACRS over book depredation Interest on loan to purchase tax exempt bonds Nondeductible meals and entertainment b. Sparrow's taxable income for 2019 is se c. Prepare Schedule M-1 for 2019. Enter all amounts as positive numbers. If an amount is zero, enter"0" Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return 1 Net income (loss) per books 2 Federal income tax per books......... 7 Income recorded on books this vear not included on this return itemize Tax-exempt interest ---- 3 4 Excess of capital losses over capital gains Income subject to tax not recorded on books this year (itemize):_-- 5 Expenses recorded on books this year not deducted on this return (itemize): Deductions on this return not charged against book income this year itemize): Depreciation........ Charitable contributions ---- - a Depreciation ...... ... Charitable contributions... ------ Travel and entertainment Add lines 7 and B.... .. Ene 28)-ine Problem 3-55 (LO. 5) The following information for 2019 relates to Sparrow Corporation, a calendar year, accrual method taxpayer: $205,050 55,650 4,500 Net income per books (after-tax) Federal income tax per books Tax-exempt interest income MACRS depreciation in excess of straight-line depreciation used for finandal purposes Excess of capital losses over capital gains Nondeductible meals and entertainment Interest on loan to purchase tax-exempt bonds 3,200 9,400 S.S00 1,100 a. Regarding items that would be added back on the M-1 schedule, label either "Yes" (it would be added back to net income per books or "No" (it would not be). Federal income tax per books Excess of capital loss over capital gains Tax-exempt interest income Excess of MACRS over book depredation Interest on loan to purchase tax exempt bonds Nondeductible meals and entertainment b. Sparrow's taxable income for 2019 is se c. Prepare Schedule M-1 for 2019. Enter all amounts as positive numbers. If an amount is zero, enter"0" Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return 1 Net income (loss) per books 2 Federal income tax per books......... 7 Income recorded on books this vear not included on this return itemize Tax-exempt interest ---- 3 4 Excess of capital losses over capital gains Income subject to tax not recorded on books this year (itemize):_-- 5 Expenses recorded on books this year not deducted on this return (itemize): Deductions on this return not charged against book income this year itemize): Depreciation........ Charitable contributions ---- - a Depreciation ...... ... Charitable contributions... ------ Travel and entertainment Add lines 7 and B.... .. Ene 28)-ine

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