Final answer:
It is true that corporations are required to report differences between book and taxable income on either Schedule M-1 or Schedule M-3 as part of their corporate income tax return.
Step-by-step explanation:
The statement that a corporation is required to report differences between book and taxable income on either Schedule M-1 or Schedule M-3 of the corporate income tax return is true.
Corporations must reconcile the income reported on their financial statements with the income reported for tax purposes. This is because the rules for financial accounting and tax accounting differ in various respects, leading to differences in income calculations. The purpose of Schedules M-1 and M-3 is to provide a detailed explanation of these differences to tax authorities.