Sam Taggart, the CEO of Skate, Inc., has reviewed Skate’s tax return and its financial statement. He notices that both the Schedule M–3 and the rate reconciliation in the income tax note provide a reconciliation of tax information. However, he sees very little correspondence between the two schedules. Outline the differences between these two schedules in a letter to Sam. Skate’s address is 499 Lucerne Avenue, Ocala, FL 34482.