ABC Corporation is an accrual-method, calendar-year corporation. In 2021. because it did not have sufficient charitable contribution modifie income, it must carry forward excess charitable contributions of $400 to 2022. Where should the $400 book-tax difference be reported on its M-12 Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3 (see instructions). 1 Net income (loss) per books. 7 Income recorded on books this year 2 Federal income tax per books not included on this return (itemize): 3 Excess of capital losses over capital gains a Tax-exempt interest $ 4 Income subject to tax not recorded on b Other (itemize): books this year (itemize): 8 Deductions on this return not charged against book income this year (itemize): a Depreciation .. $ b Charitable contributions $ Other itemize): 5 Expenses recorded on books this year not deducted on this return (itemize): a Depreciation. . b Charitable contributions $ Travel and entertainment S d Other (itemize): c 9 10 Add lines 7 and 8 Income-line 8 less line 9 6 Add lines 1 through 5 a. Line 4 b. line 7 C. Eine 5 QUESTION 6 Beth operates a plumbing business. In August 2021 she signed a contract to provide plumbing services for a renovation project. Beth began the work in August and finished the work in December 2021. However, Beth did not bill the client until January 2022 and she did not receive the payment until March 2022. When should Beth recognize income under the accrual method of accounting? a. None of the above b. In 2021 OC. In 2022 d. Beth has the option to defer income recognition to 2022