Financial statements have a different purpose from tax returns, and sometimes information on each is recorded based on its benefit to the purpose of the specific form. While tax returns are meant to encourage a business to report all income, subtract all expenses, and determine its tax liability, a financial statement has a much more involved purpose that affects the future direction of a business
and I need help with completing, analyzing on the schedule L of an 1120 tax return using the attached documents.
- Explain which financial statement the tax return information came from to reconcile the financial statements to the tax return.
- Explain where the information is found to complete that particular form or schedule.
- Explain how you prepared the Schedule L