Response to the following problem:
Ajax Corporation has the following information for 2014. Using schedule M-1 of form 1120, determine their taxable income:
Prepaid rent received in 2013 25,000
Prepaid rent received in 2014 30,000
Federal income tax 100, 250
Capital loss in excess of gains 10,000
MACRS depreciation in excess of S/L 5.000
Interest on municipal bonds 7,000
Officers' life insurance premiums 12,000
Meals and entertainment expense 22,000
Book income 173,750 .