The S corporation income tax return includes all of the following except
A)a Schedule K.
B)an M-1 Schedule.
C)a retained earnings reconciliation.
D)a reconciliation of the AAA account.

Question

Quizplus · Accepted Answer

S corporations file a Schedule K and an M-1 Schedule as part of their tax return, but they do not file a retained earnings reconciliation because they distribute income to shareholders rather than retaining earnings in the same way C corporations do. They also reconcile the Accumulated Adjustments Account (AAA).

The S Corporation Income Tax Return Includes All of the Following