The Schedule M-3 reconciliation requires less detailed information than the M-1 reconciliation.

Question

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The Schedule M-3 reconciliation requires more detailed information than the M-1 reconciliation. The M-3 requires additional disclosure of book-tax differences related to income, deductions, and credits, as well as a breakdown of net income before taxes. The M-1 only requires a simplified calculation of taxable income based on book income adjusted for certain items.

The Schedule M-3 Reconciliation Requires Less Detailed Information Than the M-1