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:

Racism

Prejudice, discrimination, or antagonism directed against someone of a different race based on the belief that one's own race is superior.

Poverty

A socioeconomic condition characterized by a lack of financial resources or means necessary to meet basic needs such as food, shelter, and healthcare.

Afrocentricity

An approach that emphasizes the importance of African culture, values, and perspectives in the analysis of social and political phenomena.

Minority

A group within a society that is differentiated by racial, religious, ethnic, linguistic, or cultural attributes and often has fewer members than the majority group.