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Understanding Schedules M-1, M-2, and M-3, Part I, of Form 1120

Topic

Tax Planning

Program ID

323577

Hours

2.5

Format

Self-Study / Traditional course (50+minutes)

Complexity

Intermediate

Description

Preparing a Form 1120 for the first time can be a daunting experience. Unlike personal income tax returns, the corporate tax return seems similar to a company's financial statements. However, Schedules M-1, M-2, and M-3, Part I, have been known to throw many new tax preparers for a loop. This course will unravel the mysteries of Schedules M-1, M-2, and M-3, Part I, for C corporations. It includes a comprehensive problem illustrating the completion of the forms. Note that many of the test questions are scenario based and require calculations. This intermediate-level course is most appropriate for the professional with detailed knowledge in C corporation taxation or the professional seeking to expand his or her knowledge base and who may be at a mid-level position within an organization with operational or supervisory responsibilities, or both.

Learning Objectives

"Upon successful completion of this course, the user should be able to: identify the differences between book income and taxable income for C corporations reported on Schedule M-1, determine basic accounting for permanent and temporary differences reported for C corporations on Schedule M-2 and analyze the year's change in unappropriated retained earnings (Schedule M-2), determine type of income statement prepared and restatements, identify the entities included in a U.S. consolidated tax group, and reconcile after-tax financial net income (loss) for the U.S. consolidated financial statement group to after-tax net income (loss) per the income statement for the U.S. consolidated tax group (Schedule M-3, Part I)."