This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:

- The purpose of Schedule M-1 and its role in reconciling book income to taxable income for corporations with assets under $10 million.

- When the more detailed and complex Schedule M-3 is required for corporations with $10 million or more in assets.

- How to properly add back non-deductible expenses, such as federal income tax, to book income.

- Why tax-exempt income, like municipal bond interest, is subtracted from book income during the reconciliation.

- How to handle the common temporary difference created by using straight-line depreciation for books and accelerated methods (MACRS) for tax.

For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep