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:

Unconscious Wishes

Desires or thoughts that reside in the unconscious mind, not readily accessible to the conscious mind but influencing behavior and emotions.

Dreaming

A sequence of thoughts, images, and sensations occurring in a person's mind during sleep.

Memory Performance

The efficiency and accuracy with which an individual can store, retain, and recall information.

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The process of acquiring new understanding, knowledge, behaviors, skills, values, or preferences through study, experience, or teaching.