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

question 105

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) Tax depreciation in excess of book depreciation.
• B) Proceeds of life insurance paid on death of key employee.
• C) Excess of capital losses over capital gains.
• D) Tax-exempt interest.
• E) None of the above.

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Definitions:

Unequal Power

Describes a situation where power is distributed unevenly among individuals or groups, leading to disparities in influence and authority.

Performance Orientation Value

The relative importance placed on achieving high levels of performance and excellence, often reflected in the culture and goals of an organization or individual.

High Standards

Expectations that are significantly above average or what is considered the norm.

Sales Representatives

Individuals tasked with selling products or services to customers, focusing on meeting sales targets and enhancing customer relationships.