Use the following facts XYZ Corp Schedule M-1Tax year 2020. XYZ declared and paid a $40,000 cash dividend in June, 2020, and declared a $30,000 dividend in December 2020, payable in January year 2021. What is the proper adjustment to Sch. M-1 to calculate Federal Taxable Income (Book to Tax Adjustment)?

Select one:

a.Subtract $40,000

b.Subtract $70,000

c.Add $40,000

d.No adjustment