M-1 Theory
Schedule ____, on Form 1120, is the reconciliation of income(loss) per books with income per return.
What is Schedule M-1/M-3?
This state has no corporate income tax
What is NV, OH, SD, WA, TX, and WY? (Name one)
BMK
Who is Brian Kreischer
Form _____ - U.S. Corporation Income Tax Return
What is Form 1120?
This is the name of one of the streets where Frank, Rimerman + Co. LLP is located in San Jose.
What is South Market St.? (Post St. is acceptable)
Book-tax differences arise from differences between financial and tax accounting. Financial accounting follows ____ and tax accounting follows ____
What is GAAP and IRC?
-Financial accounting follows GAAP (FASB/AICPA/SEC)
-Tax accounting follows the IRC (Congress/IRS)
This term means the degree of business activity that must be present before a state can impose taxes on an out-of-state entity's income.
What is nexus?
AVM/TVM
Tony Mancini
Form ____ - Depreciation and Amortization
What is form 4562?
This is a company observed holiday.
What is...
New Year’s Day, Martin Luther King Jr. Day, Memorial Day, Juneteenth, Independence Day, Labor Day, Veterans Day, Thanksgiving, Day After Thanksgiving, and Christmas Day? (Name one)
Company NSync expensed $500 in depreciation on their financial statements, but deducted $1,000 on their tax return.
What is the amount of the book-tax difference and is it favorable or unfavorable?
What is $500, Favorable?
Name at least two factors, or describe them, that states consider for purposes of allocating income for apportioning businesses.
1. Sales Factor: Income derived from within the state.
2. Property factor: Property owned or leased in the state. Physical capital located in the state
3. Payroll factor: Persons employed in the state
CMM
Cristina (Tina) Marquez
Form ____ - General Business Credit
What is Form 3800?
To account for the extra day in a leap year, this day is added to the month of February.
What is February 29th?
MegaTon Inc. buys one computer. They depreciate computer equipment over three years for their financial statements and over five years for tax purposes.
Will the book-tax difference ever be eliminated? If so, in which Year?
What is yes, at the end of Year 5?
This tax system calculates the tax liability of a company based on its gross sales, without deducting business expenses.
What is gross receipts tax?
JMA
Joe Albero
Form ____ - Limitation on Business Interest Expenses Under Section 163(j)
What is Form 8990?
This is nicknamed the "powerhouse" of the cell.
What is mitochondria?
KiloLiter Co. has to capitalize $1,000 of expenses and amortize the amount over a five-year period beginning on January 1, Year 1 for tax purposes. Their financial statements reflect a full $1,000 expense in Year 1.
What is the book-tax difference related to these capitalized expenses at the end of Year 1? When do you expect the book-tax difference to be eliminated?
What is $800, unfavorable? End of Year 5?
This state levies the highest tax rate on the highest corporate income tax bracket
What is New Jersey? (11.5% - 2023)
What is Minnesota (9.8% - 2024)
HLG
Henry Godsey
Form ____ - Credit for Increasing Research Activities
What is form 6765
This is the official currency of Switzerland
The Swiss Franc