1. M1 line 1 entitled Net income per books, should this amount be identical
to line 30 or should it be the net of line 30 less line 31of Page 1?
According to the small print of line 10 of M1 it should be the latter. Am I
right?
Line 1 has nothing to do with Page 1. It is the Net Income per books, and then
your book-tax income differences are reported on M1 to get to line 10, which is
taxable imcome, which is what is reported on Page 1, Line 28. Page 1 is your
tax "income statement" and line 28 is your taxable income total.
2. M1 line 2 may or may not agree with the total of prepayments of estimated
tax but shouldn't it be identical to page 1 line31entitled Total Tax?
Line 2, is whatever you booked on your GAAP books for income tax expense. It
doesn't have anything to do with Page 1 or your prepayments, necessarily.
3. Schedule L line 25 reads Retained Earnings Unappropriated. The question
here is should the difference between columns beginning tax year and end of
year be the net income per books or the net income per 1120 return.
Net income per books plus or minus any other M2 adjustments. Schedule L are
your book balance sheets.
4. Section m2 line 8 should agree with line 25 Schedule L and this as you
said is book income. So what happens to the tax paid
Don't understand that question. The M2 is a book retained earnings
rollforward. It is basically to ensure that you aren't hiding income in your
retained earnings increases that you aren't reconciling to taxable income w/o
support.