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

question 24

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)Premiums paid on key employee life insurance.
• B)Proceeds of life insurance paid on death of key employee.
• C)Charitable contributions carryover from previous year.
• D)Tax-exempt interest.
• E)None of the above.

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Definitions:

Security

The condition of being protected from or not exposed to danger or risk; also refers to measures taken for safety.

Motivation Factors

Elements that influence an individual's level of motivation, including intrinsic rewards, recognition, and personal goals.

Herzberg's Two-Factor Theory

A motivational theory that divides factors in the workplace into two categories: hygiene factors, which if inadequate cause dissatisfaction, and motivators, which can lead to satisfaction.

Expectancy Theory

A motivational theory suggesting that people are motivated to perform behaviors if they believe that such behaviors will lead to desired outcomes.