The M-1 is broken into the categories of possible differences between Book Income and Tax Income.

What dollar amount would be reported in one of the categories as the adjustment necessary to reconcile book income to tax income?

The company recorded $53,000 in straight line depreciation. However, according to the MACRS the depreciation is $98,000.

		$151,000
		$98,000
		$53,000
		$45,000

The M-1 is broken into the categories of possible differences between Book Income and Tax Income.

What dollar amount would be reported in one of the categories as the adjustment necessary to reconcile book income to tax income for the following scenario?

The company recorded the following gains and losses for the year $13,000 gain from sale of the stock, $12,000 gain from the sale of a bond, $60,000 loss from the sale of land, and $15,000 gain from the sale of an asset held for investment.

		$20,000
		None of the above.
		$60,000
		$40,000