Schedule M-3 (Form 1120) (Rev. 12-2019)
Page 2
Name of corporation (common parent, if consolidated return) Employer identification number
Check applicable box(es): (1)
Consolidated group (2)
Parent corp
(3)
Consolidated eliminations (4) Subsidiary corp (5) Mixed 1120/L/PC group
Check if a sub-consolidated: (6)
1120 group
(7)
1120 eliminations
Name of subsidiary (if consolidated return) Employer identification number
Part II Reconciliation of Net Income (Loss) per Income Statement of Includible Corporations With Taxable
Income per Return (see instructions)
( ) ( )
Income (Loss) Items
(Attach statements for lines 1 through 12)
(a)
Income (Loss) per
Income Statement
(b)
Temporary
Difference
(c)
Permanent
Difference
(d)
Income (Loss)
per Tax Return
1
Income (loss) from equity method foreign corporations
2 Gross foreign dividends not previously taxed . . .
3 Subpart F, QEF, and similar income inclusions . .
4 Gross-up for foreign taxes deemed paid . . . .
5 Gross foreign distributions previously taxed . . .
6 Income (loss) from equity method U.S. corporations
7 U.S. dividends not eliminated in tax consolidation .
8 Minority interest for includible corporations . . .
9 Income (loss) from U.S. partnerships . . . . .
10 Income (loss) from foreign partnerships . . . .
11 Income (loss) from other pass-through entities . .
12 Items relating to reportable transactions . . . .
13 Interest income (see instructions) . . . . . .
14 Total accrual to cash adjustment . . . . . . .
15 Hedging transactions . . . . . . . . . .
16 Mark-to-market income (loss) . . . . . . . .
17 Cost of goods sold (see instructions) . . . . .
18 Sale versus lease (for sellers and/or lessors) . . .
19 Section 481(a) adjustments . . . . . . . .
20 Unearned/deferred revenue . . . . . . . .
21 Income recognition from long-term contracts . .
22 Original issue discount and other imputed interest .
23a
Income statement gain/loss on sale, exchange,
abandonment, worthlessness, or other disposition of
assets other than inventory and pass-through entities
b Gross capital gains from Schedule D, excluding
amounts from pass-through entities . . . . . .
c
Gross capital losses from Schedule D, excluding
amounts from pass-through entities, abandonment
losses, and worthless stock losses . . . . . .
d
Net gain/loss reported on Form 4797, line 17,
excluding amounts from pass-through entities,
abandonment losses, and worthless stock losses .
e Abandonment losses . . . . . . . . . .
f Worthless stock losses (attach statement) . . . .
g
Other gain/loss on disposition of assets other than inventory
24 Capital loss limitation and carryforward used . . .
25
Other income (loss) items with differences (attach statement)
26
Total income (loss) items. Combine lines 1 through 25
27
Total expense/deduction items (from Part III, line 39)
28 Other items with no differences . . . . . . .
29a Mixed groups, see instructions. All others, combine
lines 26 through 28 . . . . . . . . . . .
b PC insurance subgroup reconciliation totals . . .
c Life insurance subgroup reconciliation totals . . .
30
Reconciliation totals. Combine lines 29a through 29c
Note: Line 30, column (a), must equal Part I, line 11, and column (d) must equal Form 1120, page 1, line 28.
Schedule M-3 (Form 1120) (Rev. 12-2019)