# Enrolled Agent Exam [Part 2] 77, Schedule M-1 / M-3 Reconciliation

Page: https://stenobird.com/podcast/finance-exam-prep-7658413/enrolled-agent-exam-part-2-77-schedule-m-1-m-3-reconciliation
Text version: https://stenobird.com/podcast/finance-exam-prep-7658413/enrolled-agent-exam-part-2-77-schedule-m-1-m-3-reconciliation.md
Podcast: [Finance Exam Prep](https://stenobird.com/podcast/finance-exam-prep-7658413)
Published: 2026-07-13T22:41:20+00:00
Episode link: https://open-exam-prep.com/
Audio file: https://episodes.captivate.fm/episode/00fdcdc4-b2dd-411b-8806-2246df1788b1.mp3
Processing state: not_requested
JSON: https://stenobird.com/v1/public/podcasts/finance-exam-prep-7658413/episodes/enrolled-agent-exam-part-2-77-schedule-m-1-m-3-reconciliation
Duration seconds: 219

## Resource

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

## Actions

- request_transcript: `POST https://stenobird.com/v1/public/podcasts/finance-exam-prep-7658413/episodes/enrolled-agent-exam-part-2-77-schedule-m-1-m-3-reconciliation/transcription-requests` — Idempotently request low-priority transcript generation for this episode.
- read_markdown: `GET https://stenobird.com/podcast/finance-exam-prep-7658413/enrolled-agent-exam-part-2-77-schedule-m-1-m-3-reconciliation.md` — Read the agent-friendly Markdown representation of this episode resource.

A page view does not enqueue transcription. Agents should invoke `request_transcript` explicitly when they need this episode processed.

## Transcript

Full transcripts are not published on public pages unless there is a clear rights basis.