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The tax return of Grates Inc a calendar year C corporation reported a net operating loss of 260,000 in the current year. It has an expected marginal…

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The tax return of Grates Inc a calendar year C corporation reported a net operating loss of 260,000 in the current year. It has an expected marginal…

The tax return of Grates Inc a calendar year C corporation reported a net operating loss of 260,000 in the current year. It has an expected marginal tax rate of 35%. Taxable income in the first preceding tax year was 50,000 and it was 10,000 in the second precedent tax year. The marginal rate in both of the carryback year is 15%.

1. What is the schedule M-1 (M-3) adjustment for the current tax year?

2. What is the deferred tax assets or liability balance?

A. What is the schedule M-1 (M-3) adjustment for the current taxyear?Ans)Schedule M-1 and M-3 is used only to find the different betweenbook income and taxble income of the firm. The different…

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