Schedule M-1 reconciles book income to the taxable income that is applied to the tax rate to determine the corporation's gross tax liability.

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Schedule M-1 is used to reconcile the income or loss reported on a corporation's books with the income or loss reported on its tax return, but it does not directly apply the tax rate to determine the corporation's gross tax liability. It is more about identifying and explaining differences between book and taxable income.

Schedule M-1 Reconciles Book Income to the Taxable Income That