Question
Using the categories in the following legend, classify each transaction as a plus (+) or minus (?) on Schedule M2 of Form 1120S. An answer
Using the categories in the following legend, classify each transaction as a plus (+) or minus (?) on Schedule M2 of Form 1120S. An answer might look like one of these: +AAA or -OAA.
Legend
AAA = Accumulated adjustments account
OAA = Other adjustments account
NA = No direct effect on Schedule M2
a. Receipt of tax-exempt interest income.
b. Unreasonable compensation determined.
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.
i. Administrative expenses.
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