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$-1?$

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

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

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

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