Schedule M-1 of Form 1120 Is Used to Reconcile Financial

question 64

Multiple Choice

Schedule M-1 of Form 1120 is used to reconcile financial net income with taxable income reported on the corporation's income tax return as follows: net income per books + additions - subtractions = taxable income.Which of the following items is an addition on Schedule M-1?

• A)Dividends received deduction.
• B)Proceeds of life insurance paid on death of key employee.
• C)Excess of capital losses over capital gains.
• D)Tax-exempt interest.
• E)None of the above.

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Definitions:

Automatic Stay

A legal provision that halts all lawsuits, foreclosures, and collection activities against a debtor the moment a bankruptcy petition is filed.

Filing Of A Petition

The act of submitting a document to a court or other authority requesting a legal proceeding.

Debts Discharged

The cancellation of a debtor's obligation to pay back a debt, often occurring through bankruptcy proceedings.

Discharging Debts

The process of legally eliminating the obligation to pay back certain debts, often under bankruptcy proceedings.