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.

Understand different categories of accounts in accounting.

Identify the normal balance for various accounts.

Recognize which financial statement reports specific account balances.

Differentiate between permanent and temporary accounts.

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Definitions:

Self-concept

An individual's perception of their own identity and personal attributes.

Ideal Self

A person's conception of how they would like to be, representing their goals, aspirations, and standards against which they measure themselves.

Rogerian Therapist

A therapist who follows Carl Rogers' client-centered therapy approach, focusing on unconditional positive regard, empathy, and congruence.

Ideal Self

A component of the self-concept representing the attributes someone would like to possess, essentially an individual's personal goals and aspirations.