Problem 11-9 Schedule M-1 (LO 11.4) Caloundra Corporation has book income of $40,000. Included in the book income is $3,000 of tax-exempt interest, 37,000 of book income tax expense, and a $2,000 non-deductible fine. Also included in book income are $10,000 of dividends Caloundra received from a 30% owned corporation Using this information and Form 1120, provide the amounts that go on each line on the form. Click here to access a blank Form 1120 and accompanying instructions. a. 40,000 b. Form 1120, Schedule M-1 Line 1 Form 1120, Schedule M-1, Line 10 Form 1120, Page 1, Line 28 35,000 X 47,000 c. d. Form 1120, Schedule C, Line 2(a) 10,000 Form 1120, Schedule C, Line 2(c) 8,000 8,000 e. Form 1120, Schedule C, Line 24 f. Form 1120, Page 1, Line 29 g. Form 1120, Page 1, Line 30 8,000 35,000 Feedback Check My Work Because of various provisions in the tax law, a corporation's taxable income seldom is the same as its accounting income (commonly referred to as "book income"). The purpose of Schedule M-1 of the corporate tax return is to reconcile a corporation's book income to its taxable income, computed before the net operating loss and special deductions such as the dividends received deduction On the left side of Schedule M-1 are adjustments that must be added to book income, and on the right side of the schedule are adjustments that must subtracted from book income to arrive at the amount of taxable income. Previous Problem 11-9 Schedule M-1 (LO 11.4) Caloundra Corporation has book income of $40,000. Included in the book income is $3,000 of tax-exempt interest, $7,000 of book income tax expense, and a $2,000 non-deductible fine. Also included in book income are $10,000 of dividends Caloundra received from a 30% owned corporation Using this information and Form 1120, provide the amounts that go on each line on the form Click here to access a blank Form 1120 and accompanying instructions. a. Form 1120, Schedule M-1 Line 1 $ 40,000 b. c. Form 1120, Schedule M-1, Une 10 Form 1120, Page 1, Line 28 Form 1120, Schedule C, Line 2(a) $ 10,000 Form 1120, Schedule C, Line 2(c) Form 1120, Schedule C, Line 24 f. g. Form 1120, Page 1, Line 29b Form 1120, Page 1, Line 30 Problem 11-9 Schedule M-1 (LO 11.4) Caloundra Corporation has book income of $40,000. Included in the book income is $3,000 of tax-exempt interest, 37,000 of book income tax expense, and a $2,000 non-deductible fine. Also included in book income are $10,000 of dividends Caloundra received from a 30% owned corporation Using this information and Form 1120, provide the amounts that go on each line on the form. Click here to access a blank Form 1120 and accompanying instructions. a. 40,000 b. Form 1120, Schedule M-1 Line 1 Form 1120, Schedule M-1, Line 10 Form 1120, Page 1, Line 28 35,000 X 47,000 c. d. Form 1120, Schedule C, Line 2(a) 10,000 Form 1120, Schedule C, Line 2(c) 8,000 8,000 e. Form 1120, Schedule C, Line 24 f. Form 1120, Page 1, Line 29 g. Form 1120, Page 1, Line 30 8,000 35,000 Feedback Check My Work Because of various provisions in the tax law, a corporation's taxable income seldom is the same as its accounting income (commonly referred to as "book income"). The purpose of Schedule M-1 of the corporate tax return is to reconcile a corporation's book income to its taxable income, computed before the net operating loss and special deductions such as the dividends received deduction On the left side of Schedule M-1 are adjustments that must be added to book income, and on the right side of the schedule are adjustments that must subtracted from book income to arrive at the amount of taxable income. Previous Problem 11-9 Schedule M-1 (LO 11.4) Caloundra Corporation has book income of $40,000. Included in the book income is $3,000 of tax-exempt interest, $7,000 of book income tax expense, and a $2,000 non-deductible fine. Also included in book income are $10,000 of dividends Caloundra received from a 30% owned corporation Using this information and Form 1120, provide the amounts that go on each line on the form Click here to access a blank Form 1120 and accompanying instructions. a. Form 1120, Schedule M-1 Line 1 $ 40,000 b. c. Form 1120, Schedule M-1, Une 10 Form 1120, Page 1, Line 28 Form 1120, Schedule C, Line 2(a) $ 10,000 Form 1120, Schedule C, Line 2(c) Form 1120, Schedule C, Line 24 f. g. Form 1120, Page 1, Line 29b Form 1120, Page 1, Line 30
