6. Use the following information to complete Schedule M-1 (Form 1120) for ADZ Corporation.

ADZ net income per books	$350,485
Federal income taxes	98,389
Excess of capital losses over capital gains	3,867
Income subject to tax not recorded on books this year	15,000
Expenses recorded on books not deducted on the tax return. Travel and entertainment expenses (nondeductible portion)Life insurance premiums Charitable contributions	5,720 10,150 7,600
Income recorded on books not included on the tax return. Tax-exempt interest Life insurance proceedsInstallment sales	5,875 175,000 9,757
Deductions on return not charged against book income this year Depreciation Pre-paid advertising	26,502 2,500
ADZ taxable income	271,577

Answer the following question based on the Schedule M-1 prepared for ADZ Corporation in Learning Activity 6. Select the total amount of expenses recorded on the books, but not deducted on the tax return:

a) $24,280 b) $33,800 c) $23,470 d) $38,470

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SQLA - 5.8

Answer the following question based on the Schedule M-1 prepared for ADZ Corporation in Learning Activity 6. Select the total amount on line 6 of Schedule M-1:

a) $453,371 b) $483,611 c) $490,891 d) $491,211

Answer the following question based on the Schedule M-1 prepared for ADZ Corporation in Learning Activity 6. Select the total amount of income recorded on the books but not included on the tax return:

a) $190,632 b) $184,757 c) $180,875 d) $196,352

Answer the following question based on the Schedule M-1 prepared for ADZ Corporation in Learning Activity 6. Select the income amount on line 10 of Schedule M-1:

a) $287,977 b) $271,577 c) $289,517 d) $274,077