Question $6/10$

See Hill Production, Inc.$\text{'}$s $2022$ Schedule M$-1,$ with only lines $1$ and $8$ completed. Review the

corporation's Income Statement.

Which item explains the difference between line $1$ and line $8$ on its Schedule M$-1?$

Depreciation deducted on the books, but not on the return.

Shareholder health insurance premiums deducted on the books, but not on the tax return.

Meal expenses deducted on the books, but not on the tax return.

Tax$-$exempt interest income reported on the books.