Which of the Following Regarding Schedule M-1 and Schedule M-3

question 107

Multiple Choice

Which of the following regarding Schedule M-1 and Schedule M-3 of Form 1120 isfalse?

• A) Both Schedules M-1 and M-3 reconcile to a corporation's bottom line taxable income.
• B) Schedule M-1 does not distinguish between temporary and permanent book-tax differences whereas Schedule M-3 does.
• C) In general, smaller corporations are required to complete Schedule M-1 while larger corporations are required to complete Schedule M-3.
• D) Schedule M-3 lists more book-tax differences than Schedule M-1.

---

Definitions:

Rationality

The quality of being based on or in accordance with reason or logic; the ability to make sensible, logical decisions.

Max Weber

A German sociologist, philosopher, and political economist, whose ideas profoundly influenced social theory and social research.

Positivist Critique

A critical perspective based on the belief that information derived from logical and mathematical treatments and reports of sensory experience is the exclusive source of all authoritative knowledge.

French Revolution

A period of radical social and political upheaval in France between 1789 and 1799, which resulted in the overthrow of the monarchy, establishment of a republic, and significant changes in the country's social structure.