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

question 42

Multiple Choice

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

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

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Definitions:

Accrued Paid Sick Leave

This is the amount of paid sick leave that an employee has earned over time but has not yet used.

Union Avoidance

Strategies and practices employed by employers to prevent employees from joining or forming labor unions.

Representation Election

A voting process conducted to determine if employees wish to be represented by a union in their workplace.

Certification

The process of verifying the attributes or qualifications of a person or organization, usually through the issuance of a document or certificate.