Which of the following items should be included on the schedule m-1, reconciliation of income (loss) per books with income per return, of form 1120, u. s. corporation income tax return, to reconcile book income to taxable income?

Premiums paid on key-person life insurance policy.

Explanation:

Schedule of M-1 states the reconciliation of loss or income as per books to income or loss as per the tax return. Items which are involve on this schedule are those which are as:

1. recorded as an expense for the purpose of books but not for tax purpose

2. reported as the income for book purpose not for tax purpose

3. recorded as taxable income for tax purpose not as income for book purpose.

4. recorded as deductible for the tax purposes but not as expense for the book purpose.

Therefore, the premium paid on the person life insurance policy are the GAAP expense for the purpose of books, but not allowed as deductions for tax purpose.

Note: Options are missing so providing the direct answer.

answer: g

explanation: g

answer; ///retained