Which of the Following Statements Is Incorrect

Which of the following statements is incorrect?

A) Schedule L is prepared in accordance with the accounting method used to keep financial accounting records.
B) Schedule M-1 is a reconciliation from book income to taxable income.
C) Schedule M-1 shows all book/tax differences,regardless of whether they are permanent or temporary differences.
D) Schedule M-3 is only prepared by corporations with total receipts and total assets of less than $250,000.