Trial Balance
TB Accounts that begin with "1"
What are Assets?
Meals & Entertainment is a type of M-1 adjustment that never reverses.
What is a permanent difference?
The Form 1120 page number with Income Statement amounts.
What is page 1?
The form, schedule (or page #), and line number that "1000 - Cash" is mapped to.
Form 1120, Sch. L, line 1.
The % tax deduction disallowance for M&E (in most situations).
What is 50%?
TB Accounts that begin with "3."
What is Equity?
Depreciation is a type of M-1 adjustment that reverses over time.
What is a temporary or timing difference?
The Schedule name with Balance Sheet numbers.
What is Schedule L?
The form, schedule (or page #), and line number that "1200 - Other receivables" is mapped to.
Form 1120, Sch. L, line 6.
The calculation for pre-tax book income (PBT).
What is Book Net Income plus Book Income Tax?
Cost of goods sold begins with this TB account number.
What is "5"?
M-1 adjustment is a negative number.
What is favorable?
The schedule that reconciles book income with taxable income.
What is Schedule M-1 or Schedule M-3?
The form, schedule (or page #), and line number that "3500 - Retained Earnings" is mapped to.
Form 1120, Sch. L, line 25.
The calculation for Taxable Income.
What is PBT plus permanent and temporary differences?
In debit/credit format, summing the TB amounts should equal this number.
What is zero?
The type of TB account for "Change in Balance" M-1 adjustments.
What is a Balance Sheet account?
A required schedule when a company's total assets at the end of the tax year equals or exceeds $10 million.
What is Schedule M-3?
The form, schedule (or page #), and line number that "5000 - Cost of Sales" is mapped to.
Form 1120, page 1, line 26.
The method for depreciating fixed assets for tax purposes.
What is MACRS (Modified Accelerated Cost Recovery System)?