1. Which of the following statements is correct regarding the taxation of C corporations? Schedule M-2 is used to reconcile net income as computed for financial accounting purposes with taxable income reported on the corporation's tax return. The corporate return is filed on Form 1120S. Corporations can receive an automatic extension of nine months for filing the corporate return by filing Form 7004 by the due date for the return. A corporation with total assets of $7.5 million or more is required to file Schedule M-3. None of the above.