Clearly identify the requirements being addressed by preparing Schedule M-2 of Form 1120.

 

M-2 Information for an accrual basis corporation

Net income per book (after-tax)	$386,250
Taxable income	$120,000
Federal income tax per books	$30,050
Cash dividend distributions	$150,000
Unappropriated retained earnings, as of January 1, 2013	$796,010

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Schedule M-2 Analyeie of Unappropriated Retained Eaminge per Booke (Line 25, Schedule L) 5 Distributions: a Cash. 1 Balance at beginning of year 2 Net income (loss) per books 3 Other increases (itemize): 4 Add lines 1, 2, and 3 ‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒ ‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒ ‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒ b Stock • Property. Other decreases (itemize): 7 Add lines 5 and 6 8 Balance at end of year (line 4 less line 7) . Schedule M-2 Analyeie of Unappropriated Retained Eaminge per Booke (Line 25, Schedule L) 5 Distributions: a Cash. 1 Balance at beginning of year 2 Net income (loss) per books 3 Other increases (itemize): 4 Add lines 1, 2, and 3 ‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒ ‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒ ‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒ b Stock • Property. Other decreases (itemize): 7 Add lines 5 and 6 8 Balance at end of year (line 4 less line 7) .

Answer rating: 100% (QA)

Solution Schedule M2 Analysis of Unappropriated Retained Earnings per Booke ... View the full answer