1120 Schedule L Example 2023-2024 Form

Instructions and help about compensation of officers 1120

hello and welcome to the session in which we will discuss schedule M3 a form 1120. in the prior sessions we looked at schedule M1 and we looked at schedule M2 so it's very important to real quick review what's in schedule M1 in schedule M1 we looked at our book income or simply put Gap income then we compare Gap income we reconcile we did not compare we reconcile Gap income to taxable income what is taxable income income under the the IRS rule so we looked at the differences because the IRS is interested in learning why you have for example High net income for Gap purposes but when it comes to taxes you have low net income or even a loss so their concern is why why the discrepancies if there's any we need to see them that's basically what schedule M1 is then in schedule M2 we looked at the statement of retained earnings which is just a review beginning retained earnings plus net income minus net loss minus dividend will give us ending retained earnings and we discuss schedule M2 and de