In the current year, Pelican, Inc., incurs $10,000 of meals and entertainment ex
ID: 2551768 • Letter: I
Question
In the current year, Pelican, Inc., incurs $10,000 of meals and entertainment expenses that it deducts in computing net income per the corporation's financial statements. All of the meals and entertainment expenditures are subject to the 50% cutback rule applicable to such expenditures.
Complete the statements below that outline how this information is reported on Schedule M–3.
Pelican, Inc., reports the meals and entertainment expenditures on line............., Part III . The corporation reports book expense of $............. in column (a), permanent difference of $........ in column (c), and tax return deduction of $.........in column (d).
Explanation / Answer
Complete the statements below that outline how this information is reported on Schedule M–3.
Pelican, Inc., reports the meals and entertainment expenditures on line......12......., Part III .
The corporation reports book expense of $.10000. in column (a)
permanent difference of $10000 in column (c)
and tax return deduction of $0..in column (d).