I am having difficulty figuring out the taxable income and the calculations are not equaling. Will someone please help?

Your tax senior has e-mailed you Oh Gnome You Didn't, Inc.'s GAAP-basis trial balance and

financial statements for the 2018 calendar year, prepared using Microsoft Excel, and has asked

you to convert Gnome's book income into taxable income within the same Excel workbook.

The Excel workbook contains pre-formatted tabs you'll need to complete to properly calculate

taxable income.

Your tax senior has also asked you to prepare Form 1120, Schedule M-3 for Gnome once you

have finished computing taxable income.

Step 1 - Taxable Income Calculation using Microsoft Excel

b. Hint - you will need to use the "Trial Balance" tab to help you determine the

correct "Acct. Number" for the applicable cells.

a. The accuracy checkpoint should show a variance within +/- 1.0 (cell C30).

Step 2 - Preparation of Schedule M-3 (Form 1120)

Your tax senior has also asked you to prepare Form 1120, Schedule M-3 for Gnome once you

have finished computing taxable income.

1. Access a fill-able version of Schedule M-3 at the following site:

https://www.irs.gov/pub/irs-pdf/f1120sm3.pdf

2. Download the form to your hard drive.