Heron Corporation, a Calendar Year, Accrual Basis Taxpayer, Provides the Following

Heron Corporation, a calendar year, accrual basis taxpayer, provides the following information for this year and asks you to prepare Schedule M-1.
? $$\begin{array} { l r } \text { Net income per books (after-tax) } & \$ 239,700 \\\text { Taxable income } & 195,000 \\\text { Federal income tax liability } & 59,300 \\\text { Interest income from tax-exempt bonds } & 5,000 \\\text { Interest paid on loan incurred to purchase tax-exempt bonds } & 2,000 \\\text { Life insurance proceeds received as a result of death of Heron's } & 100,000 \\\text { president } & \\\text { Premiums paid on policy on life of Heron's president } & 4,500 \\\text { Excess of capital loses over capital gains } & 2,000 \\\text { Retained earnings at beginning of year } & 375,000 \\\text { Cash dividends paid } & 90,000 \\\text { Tax depreciation in excess of book depreciation } & 7,500\end{array}$$ ?