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r 1-22 Schedules M-1, M-2. P Corporation reports the following information for 2021: Net income per books..... Federal income taxes (accrued). $125,730 10,500 Net
r 1-22 Schedules M-1, M-2. P Corporation reports the following information for 2021: Net income per books..... Federal income taxes (accrued). $125,730 10,500 Net capital loss... 3,600 Travel and meals (50% portion disallowed for FIT) 300 Proceeds of life insurance on president ... 75,000 Insurance premiums on life of president... 1,250 Tax-exempt interest.. 3,500 ACRS deductions in excess of straight-line depreciation used for book purposes 1,400 Excess charitable contributions..... 520 Unappropriated retained earnings (beginning of 2019). Dividends paid during the year.. 200,000 23,500 Complete Schedules M-1 and M-2 below. 1 Net income (loss) per books. 2 Federal income tax per books 3 Excess of capital losses over capital gains Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions. 7 Income recorded on books this year not included on this return (itemize): Tax-exempt interest $ 4 Income subject to tax not recorded on books this year (itemize): 8 Deductions on this return not charged 5 Expenses recorded on books this year not deducted on this return (itemize): against book income this year (itemize): a Depreciation . . $ a Depreciation .. $ b Charitable contributions $ b Charitable contributions $ c Travel and entertainment. $ 9 Add lines 7 and 8. 6 Add lines 1 through 5. Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Schedule L, Line 25) 10 Income (page 1, line 28)-line 6 less line 9 1 Balance at beginning of year 2 Net income (loss) per books. 5 Distributions: a Cash. b Stock 3 Other increases (itemize): c Property. 6 Other decreases (itemize): 7 Add lines 5 and 6 . . 4 Add lines 1, 2, and 3 8 Balance at end of year (line 4 less line 7) Form 1120 (2020)
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