Swan Corporation, a calendar year C corporation, had the following information for 2012:
|
Net income per books (after tax) |
$174,700 |
|
Taxable income |
195,000 |
|
Federal income tax per books |
59,300 |
|
Cash dividend distributions |
35,000 |
|
Unappropriated retained earnings, as of January 1, 2012 |
636,450 |
Based on the above information, use Schedule M–2 of Form 1120 (see Example 42 in the text) to determine Swan’s unappropriated retained earnings balance as of December 31, 2012.