Schedule M-1 of Form 1120 Is Used to Reconcile Financial

Multiple Choice

Schedule M-1 of Form 1120 is used to reconcile financial net income with taxable income reported on the corporation's income tax return as follows: net income per books + additions - subtractions = taxable income.Which of the following items is a subtraction on Schedule M-1.

A) Book depreciation in excess of allowable tax depreciation.
B) Federal income tax per books.
C) Premiums paid on life insurance policy on key employee.
D) Tax-exempt interest.
E) None of the above.