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

question 54

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 a subtraction on Schedule M-1?

• A) Book depreciation in excess of tax depreciation.
• B) Excess of capital losses over capital gains.
• C) Proceeds on key employee life insurance.
• D) Income subject to tax but not recorded on the books.
• E) None of the above.

---

Definitions:

Maps

Visual representations of an area, showing its physical features, roads, or geographical locations.

Error of Format

A mistake made in the way information is structured or arranged in a document, different from content or grammatical errors.

Distracting Use

The inappropriate or excessive use of elements in communication or activities that detracts from the main message or focus.

Zero Beginning

Starting from nothing or from a base level without pre-existing elements or resources.