$19$

Multiple Choice $3\mathrm{.}34$ points

Which of the following regarding Schedule M$-1$ and Schedule M$-3$ of Form $1120$ is false?

Schedule M$-1$ does not distinguish between temporary and permanent book$-$tax differences whereas Schedule M$-3$ does.

By design, both Schedules M$-1$ and M$-3$ reconcile to a corporation's bottom line taxable income.

Schedule M$-3$ lists more book$-$tax differences than Schedule M$-1.$

In general, smaller corporations are required to complete Schedule M$-1$ while larger corporations are required to complete Schedule M$-3.$