Which of the Following Items Are Increases on Schedule M-3

question 52

Multiple Choice

Which of the following items are increases on Schedule M-3 on the Form 1120S,for an S corporation with $230,000 in ordinary income?

• A)An IRS agent's determination of unreasonable compensation of $43,000.
• B)Charitable contributions of $15,000.
• C)Receipt of $220,000 in tax-exempt insurance proceeds.
• D)Business gifts in excess of $25.
• E)a and d

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Definitions:

Annuity Due

A type of annuity payment where the payment is due at the beginning of each period, rather than at the end.

Expected Cash Flows

The projected amounts of money to be received or paid out by a business within a specified period.

FASB Concepts

Theoretical principles and frameworks established by the Financial Accounting Standards Board to guide the development of accounting standards.

Interest Rate

The percentage at which interest is charged or paid on borrowed or saved money, typically expressed as an annual percentage.