The dividends received deduction is an adjustment on the Schedule M-1. a. True. b. False. QUESTION 36 The ABC Corporation's taxable income is $240,000. This amount reflects a $5,000 capital loss carryover from the prior year. This is the company's over book to tax difference for the year. Based on these facts, calculate ABC's book income. a. $240,000 b. $245,000 c. $235,000 d. None of the above. QUESTION 37 Jackson incorporates his sole proprietorship with assets having a fair market value of $200,000 and an adjusted basis of $300,000. Even though 351 applies, Jackson mily recognize his realized loss of $100,000 when he transfers the assets to the new corporation. a. True. b. False