Concerning Schedule M-3, Part I, line 6, which statement related to non-includable U.S. entities is true?

A) Consolidated financial net income is adjusted for net income of a non-includable U.S. Entity, which is accounted for under the equity method for financial statement purposes.

B) For Less than wholly non-includable U.S. entities, the net adjustment to be made in part I, line 6, is for the net income/loss before minority interests.

C) If the consolidated financial statements include entities that are ineligible to file on a consolidated basis for tax purposes, the net income/loss per income statement of the U.S. consolidated tax group.

D) When the consolidated financial net income includes net income from an ineligible non-includible US entity, it will be necessary to add the non-includible US entity income to the consolidated financial net income to determine the net income/loss per income statement of the US consolidated tax group.

Which of the following only increases un-appropriated retained earnings per books on Schedule M-2 (Form 1120)

A.) Cancellation of appropriated retained earnings

B) Change in accounting principle

C) Conversion of convertible securities into common stock

D) Prior Period Adjustments

Schedule M-1 requires the addition of fed income tax on line 2. Fed income tax inclused which of the following?

A) only Fed income and estate taxes

B) Only fed income and FUTA taxes

C) Only Fed income taxes

D) Only FUTA and FICA taxes

Which of the following is not shown on schedule M-2

A) Cash dividends on preferred stock

B) Liquidating Dividends

C) Property Dividends

D) Stock Dividends

The first line of Schedule M-1 is net income per books. Net income means which of the following?

A) Net Income after taxes

B) Net income before extraordinary items

C) Net income before taxes

D) Net income from continuing operations

Which of the following taxpayers must complete form 1120 Schedule M-3 with its US tax return for year ended 12-31-2022?

A) A C corp filing a separate return with at least $10 million total assets reported on Schedule L

B) A partnership with at least 5 partners that has a leas 10 million total assets reported on 1065

C) A real estate Investment firm with at least $5 million in total assets that are reported on Form 1120-REIT

D) An S corp with at least 10 million total assets on Sched L 1120-S