Question

When preparing Schedule M-1 of Form 1120, which of the following must be added to net income per books to compute taxable income?

a. 100% of meals and entertainment expense
b. Muncipal bond interest
c. Excess of tax vs. book depreciation
d. Accrued bad debts

Answer 1

d. Accrued bad debts

Step-by-step explanation:

The Schedule M-1 of Form 1120 refers to the tax form in which the corporation disclosed its income, expenses and deductions if any by analyzing them in different columns

If there is any difference in the amount the changes could be made in the form

In the given case while computing the taxable income, the accrued bad debts should be added to the net income as per the books