Schedule M-1 of Form 1120 Is Used to Reconcile Financial

question 56

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) Proceeds on key employee life insurance.
• B) Excess of capital losses over capital gains.
• C) Book depreciation in excess of tax depreciation.
• D) Income subject to tax but not recorded on the books.
• E) None of the above.

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Definitions:

Logistics Plans

Detailed strategies for managing the flow of goods, services, and information from point of origin to point of consumption to meet customer requirements.

HR Plans

Strategic outlines developed by an organization's human resources department to recruit, train, manage, and retain employees effectively.

Coordinated

The organization or arrangement of different elements or actions to operate in harmony or achieve a specific outcome.

Strategic Plans

Detailed documents that outline an organization's goals for the future and the actions needed to achieve those goals.