Problem 3-58 (L0.5) In the current yeat, Pelican, Inc., Incurs $50,000 of nondeductible fines and penalties. Its deprecation 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 "o". Pelican, Inc., reports the fines and penalties on Schedule M-3, line 12. Part Ill as follows: the book expense of $50,000 is reported in the permanent difference of $ is reported in and the tax return deduction of is reported in It also reports the depreciation on line 31, Part Ift as follows: book expense of $245,000 in temporary difference of and tax return deduction of in