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:
$\begin{array}{lr}\text { Net income per books (after-tax) } & \$ 239,700 \\\text { Taxable income } & 195,000 \\\text { Federal income tax liability } & 59,3000\\\text { Interest income from tax-exempt bonds }&5,000\\\text { Interest paid on loan incurred to purchase tax-exempt bonds } & 2,000 \\\text { Life insurance proceeds received as a result of death of Heron's }& 100,000\\ \text {president}\\ \text {Premiums paid on policy on life of Heron's president}&4,500\\ \text {Excess of capital losses over capital gains}&2,000\\ \text {Retained earnings at beginning of year}&375,000\\ \text {Cash dividends paid}&90,000\\ \text {Tax depreciation in excess of book depreciation}&7,500\end{array}$