An S Corporation That Has Total Assets of at Least

question 100

True/False

An S corporation that has total assets of at least $5 million on Schedule L at the end of the tax year must file a Schedule M-3.

---

Definitions:

Overapplied Amount

A situation in cost accounting where the allocated factory overhead costs exceed the actual overhead costs incurred.

Factory Overhead

Indirect costs related to manufacturing, including utilities, maintenance, and factory equipment depreciation.

Machine Hours

A measure of production time, calculated as the total number of hours that machines are operated during a specific period.

Applied Amount

The portion of an allocated or assigned cost to a particular department, project, or product.