Problem 12-41 (LO. 9) In the current year, Pelican, Inc., incurs $50,000 of nondeductible fines and penalties. Its depreciation expense is $245,000 for financial statement purposes and $310,000 for tax purposes. How is this information reported on Schedule M-37 Click here to access Form 1120, Schedule M-3. If an amount is zero, enter "0". is reported in I Pelican, Inc., reports the fines and penalties on Schedule M-3, line 12, Part III as follows: the book expense of $50,000 is reported in the permanent difference of $ and the tax return deduction of It also reports the depreciation on line 31, Part III as follows: book expense of and tax return deduction of is reported in $245,000 in temporary difference of s in in