Question

A reconciliation of the corporation's beginning and ending balance in its unappropriated retained earnings account is reported on Schedule ______.

1) M-3
2) M-1
3) L
4) M-2

Answer 1

The reconciliation of a corporation's beginning and ending retained earnings balance is reported on Schedule M-2, part of the Form 1120 tax return.

Step-by-step explanation:

A reconciliation of the corporation's beginning and ending balance in its unappropriated retained earnings account is reported on Schedule M-2. Schedule M-2 is part of the corporate tax return (Form 1120) and serves to reconcile the amount of retained earnings from the beginning to the end of the year, accounting for items such as net income, distributions, and other adjustments. This form is crucial for both corporate financial reporting and tax purposes, ensuring transparency in how the retained earnings of a company change over the fiscal year.