Schedule M1 and M2 For Rocky Mountain Equipment Corporation Form 1120-FThe Rocky Mountain Equipment Corporation, a Colorado Corporation, was formed by two Colorado State University business school graduates. The Rocky Mountain Equipment Corporation incorporated on October 20, 1974. The main line of business is selling recreational equipment to outdoor enthusiasts. Starting in their parents’ garage, they have grown the corporation to a multi million dollar business.To comply with accounting requirements, the company uses an accrual method of accounting. Its accumulated earnings and profits as of December 31, 2016, were $1,200. It made cash distributions during its 2016 calendar tax year of $140,089. This consisted of $85,089 to preferred shareholders and $55,000 to common shareholders. The entire distribution to preferred shareholders is a taxable dividend. The $27,500 distribution on March 15, 2016, to common shareholders is a taxable dividend to the extent of $27,318 (99.33%), and the $27,500 distribution on September 15, 2016, to common shareholders is a taxable dividend to the extent of $26,118 (94.97%).The following profit and loss account appeared in the books of the Rocky Mountain Equipment Corporation for calendar year 2016 (see spreadsheet attached "CT2 - Assignment" TAB 2). It is required to file Form 1120 and completes Form 1120-F (M-1 and M-2).Exercise to be completed:Please prepare Schedule M-1 for Rocky Mountain Equipment Corporation using the financial information and Form 1120 line items provided above (see template attached).Please prepare Schedule M-2 for Rocky Mountain Equipment Corporation using the retained earning information provided (see template attached). To accurately calculate and support the ending balance, please complete a Retained Earnings Reconciliation Table.