Which Item Does Not Appear on Schedule K of Form

question 122

Multiple Choice

Which item does not appear on Schedule K of Form 1120S?

• A) Tax-exempt interest income.
• B) Section 1231 gain.
• C) Section 179 depreciation deduction.
• D) Depreciation recapture income.
• E) All of the above appear on Schedule K.

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Definitions:

Asset Efficiency

A measure of how effectively a company uses its assets to generate revenue.

Salvage Value

The projected resale price of an asset upon reaching the end of its useful period, accounted for in computing depreciation.

Plant Assets

Long-term tangible assets that are used in the operation of a business and are not intended for resale.

Depreciation Expense

Apportioning a physical asset’s cost over its estimated useful life.