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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