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:

Neural Activity

The operation of nerve cells (neurons) which involves the generation and transmission of electrical and chemical signals.

Caffeine

A stimulant found in coffee, tea, and various other beverages that affects the central nervous system, resulting in increased alertness and reduced fatigue.

Withdrawal

The process or experience of stopping or reducing the use of a psychoactive substance, characterized by physical and mental symptoms that vary based on the substance.

Drug Tolerance

The body's reduced response to a drug with repeated use, requiring higher doses to achieve the same effect.