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.

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Definitions:

Self-Control

The ability to pursue a goal while adequately managing internal conflicts about it, or to delay pursuing a goal because of other considerations or constraints.

Delay Mechanisms

Techniques or processes used to postpone or slow down an action or reaction.

Self-Reliant

The ability to depend on oneself for various needs and decisions without requiring support or approval from others.

Perform Better

To perform better means to achieve a higher level of efficiency, effectiveness, or quality in a given task or activity compared to previous efforts.