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:

Enuresis

A disorder marked by repeated bed-wetting or wetting of one’s clothes.

Bedwetting

The involuntary passing of urine during sleep, medically known as nocturnal enuresis.

Age of Five

Refers to the period in a child's life when they are five years old, a stage important for development in areas like language, motor skills, and social interaction.

Relational Aggression

A type of aggression in which harm is caused through manipulation or damage to relationships or social standing.