In practice, the first step in preparing a corporate income tax return is to analyze the Income Statement and determine what items need to be adjusted for tax purposes. The preparer may create a summary of these differences for the file to support the Form 1120 that he or she prepares. The differences are reported on the Form 1120 Schedule M-1 or Form 1120 Schedule M-3 depending on the size of the company.;Part 1;Deliverable Length: 800?1,000 words;Use the following Web site to download the Form 1120 and Form 1120 (Schedule M-3) along with the instructions;IRS Forms and Publications;Prepare a memo to the file that explains the following;What is the Schedule M-1 and what is its purpose?;How is the information reported on the Schedule M-1? (Describe the components.);Describe 2 book or tax differences that may be reported on the Schedule M-1.;When is the Schedule M-1 to be prepared?;Who must file a Schedule M-3? How is it filed?;What is the purpose of the Schedule M-3?;How is the information reported on the Schedule M-3? (Describe the sections or components.);Describe how the Schedule M-3 differs from the Schedule M-1.;What are temporary differences and permanent differences?;Part 2;Deliverable Length: Completed Form 1120 (Schedule M-1);Go to the IRS Forms and Publications Web site to download the Form 1120 (Schedule M-1). Prepare the Schedule M-1 using the taxable income that you calculated in the Week 2 Individual Project.
Paper#74855 | Written in 18-Jul-2015Price : $22