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

question 62

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 allowable tax depreciation.
• B)Federal income tax per books.
• C)Premiums paid on life insurance policy on key employee.
• D)Tax-exempt interest.
• E)None of the above.

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Definitions:

Legal Responsibilities

Obligations that individuals or organizations have to act in accordance with laws and regulations.

Codes Of Conduct

Written guidelines that outline ethical standards, expectations, and practices for behavior within an organization or profession.

Ethical Climate

The collective moral attitudes, standards, and values that shape the behavior, practices, and decision-making within an organization.

Stakeholders' Trust

The confidence that shareholders, customers, employees, and other people who have an interest in the organization have in the company's ability to meet its obligations and act in their best interests.