Episode
Enrolled Agent Exam [Part 2] 77, Schedule M-1 / M-3 Reconciliation
- Podcast
- Finance Exam Prep
- Published
- Jul 13, 2026
- Duration seconds
- 219
- Processing state
not_requested- Canonical source
- https://open-exam-prep.com/
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Summary
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