Question

Which of the following book-tax differences is not reported on Schedule M-1?

a. the dividends received deduction.
b. charitable contributions in excess of 10% of taxable income
c. federal income tax expense.
d. excess capital losses carried forward to a future year.

Answer 1

The dividends received deduction is not reported on Schedule M-1.

Step-by-step explanation:

The book-tax difference that is not reported on Schedule M-1 is a. the dividends received deduction. Schedule M-1 is used to reconcile the differences between the book income (reported on the company's financial statements) and taxable income (reported on the tax return). The other options given in the question, such as excess capital losses carried forward and federal income tax expense, are reported on Schedule M-1.