Question

C CORPORATION BOOK-TO-TAX RECONCILIATION. Astro Corporation, an accrual basis, calendar-year C corporation, began operations on January 2, 2010. For each item below, determine the 2019 Schedule M-1 adjustment to reconcile book income to taxable income, i.e., the amount and the effect ( + or -). Net income per books $950,000 Provision for Federal income taxes, $240,000 Municipal bond interest, $12,000 During 2019, Astro increased its allowance for uncollectible accounts by $30,000; actual bad debts written off in 2019 were $36,000. Astro reported depreciation for financial purposes of $125,000; MACRS, Bonus, & $179 for the year was $170,000 Astro acquired another corporation in 2015, paying $300,000 for goodwill. Astro recorded a goodwill impairment loss of $50,000 for financial purposes in 2019. In December 2018, Astro received $25,000 as an advance payment for an order from a customer. Astro reported the $25,000 as a liability (unearned income) on its balance sheet at 12/31/18 and as earned income in 2019. In December 2019, Astro received $40,000 as an advance payment for an order from a customer. Astro reported the $40,000 as a liability (unearned income) on its balance sheet at 12/31/19. Astro reported gains of $22,000 and losses of $26,000 from the sale of investments in its "Other Revenues & Expenses" section of its income statement Astro received dividend income from 20%-owned corporations totaling $40,000. In May 2019, Astro paid a $10,000 fine to a local government for violating a local ordinance. Taxable income

Answer 1

The Total Taxable Income is $ 965000.

ASTTO COePoration an arcural basis acalendaY year crCoTPara Hoibegan oPerutons on Tanuar 2 2010.for eacn irem belouiderermine me 2019 15Che e m- Cadiusimem toireconcile baok ncome t0 taxable income ie we amsun ahd he Net inCome per books Prauision pox Federal income tox $240,000 (240,0) ii Memicieal bond mteres+ 200o During 2019, ASt0 increased it+5 allowance $9501000 CIe000) fOr uncalletible accounts by $30,000 actual bad depts witten ofe im 2014 were $36o00 AstYo acamired anotner coreoration in Z015 Paying 300,000 Fos goodwil, AS+0 Yecored a good will im paisment loSs of $50000 for Pinancial PrsPose in 2019 C In Dec 2018 ASto receiued E$2500095 an Aduance Payment FoY an order From a ustomer. AStso Sepoed the $250o0 G000 2501000 asa liability on i+5 BS at (21 31118ahd ar cahed income in 20l9. Cii) Dn oec 2219 ASt Teceives $40000 asan advan ce a customer ASto0repord the 6G000,0 25000 Pay ment FoY an order From |C4o000s aiabilit an ts Bs uiiv ASt0 Reported gains of $22000 and Losses of $26000 From sale of inuestmen n its other Re venues andexP secton f it inc&we statement

Date Paga ASHYO recewed diuidemd incovme from 2011aunea Covtorations toruiing $00D0 40000 Fn may 2014, A STOG paida $100Do Pine to a local gover ment forNoilating a Local ordiane Xo SM CIO000 income 465000 Taxable