Which of the Following Is True Concerning Schedule M-1 on a Corporate

question 14

Multiple Choice

Which of the following is true concerning Schedule M-1 on a corporate tax return?

• A)Schedule M-1 does not reflect adjustments for net operating losses and special deductions such as the dividends received deduction.
• B)Tax exempt income is reported on Schedule M-1 as an add back.
• C)Schedule M-1 starts with taxable income and makes adjustments to reconcile to book income.
• D)Federal income tax expense is reported on Schedule M-1 as a subtraction.

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Definitions:

Gold Deposits

Concentrations of gold found within the Earth's crust, often mined for economic purposes.

Stream Gravels

Loose, water-worn rocks found in or near the bed of a stream.

Fractures

Breaks or cracks in rocks along which there is no movement of the sides.

Photovoltaic Panels

Devices that convert sunlight directly into electricity through the photovoltaic effect.