Question
Using the categories in the following legend, classify each transaction as a plus (+) or minus (-) on Schedule M-2 of Form 1120S. An answer
Using the categories in the following legend, classify each transaction as a plus (+) or minus (-) on Schedule M-2 of Form 1120S. An answer might look like one of these: +AAA or -OAA.
AAA = Accumulated adjustments account
OAA = Other adjustments account
NA = No direct effect on Schedule M-2
a. Receipt of tax-exempt interest income
b. Administrative expenses
c. Depreciation recapture income
d. Nontaxable life insurance proceeds
e. Expenses related to tax-exempt securities
f. Charitable contributions
g. Business gifts in excess of $25
h. Nondeductible fines and penalties
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