LO.6 Schedule M–1 of Form 1120 is used to reconcile financial net income with taxable income reported on the corporation’s income tax return as follows: net income per books + additions − subtractions = taxable income. Classify the following items as additions or subtractions in the Schedule M–1 reconciliation.

a. Nondeductible portion of meals and entertainment.

b. Tax depreciation in excess of book depreciation.

c. Federal income tax per books.

d. Capital loss in excess of capital gain.

e. Charitable contributions in excess of taxable income limitation.

f. Tax-exempt interest income.
g. Domestic production activities deduction.