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:

Functional Analysis

In behaviorism, a description of how a behavior is a function of the environment of the person or animal that performs it.

Empiricism

The philosophical perspective that knowledge comes primarily from sensory experience and observation.

Operant Conditioning

Skinner’s term for the process of learning in which an organism’s behavior is shaped by the effect of the behavior on the environment.

Respondent Conditioning

Skinner’s term for classical conditioning.