g prepare M1 Net income per books (after tax) $3,600,000 Federal income tax per books $750,000 Excess of capital losses over capital gains $111,000 Nondeductible penalties $ 21,000 Rent expense $80,000 Meals expense (total amount) $21,000 Tax-exempt interest income $ 17,000 Excess of book (GAAP) depreciation over tax (MACRS) depreciation $ 85,000

As a result of a labeling mistake at the chemical factory, a farmer accidentally sprays weedkiller rather than fertilizer on half her land. as a result, she loses half of her productive farmland. if the property of diminishing returns applies to all factors of production, she should expect to seea. a decrease in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. b. an increase in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. c. an increase in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor. d. a decrease in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor.