Does anybody know where I can get problems and/or simulation that would allow me to practice M-1?
BEC: Done
REG: Done
AUD: Done
FAR: May 10
Almost there....
REG: Done
AUD: Done
FAR: May 10
Almost there....
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Givemesleep
offlineMember@hopefull - M-1 is simply the reconciliation between book and tax items. Not heavily tested from my experience. There are better areas to focus on like basis calculation for S Corps and Especially partnerships
Reg 11/15/2011 - 80
Aud 02/28/2012 - 81
Bec 05/31/2012 - retake
Far 08/31/2012
GivemesleepPosted 4 months ago # -
CannotPassAgain
offlineMemberomfg I was working on my first c-corp tax return and my supervisor was trying to explain the various m-1 adjustments...i was going nuts. work really humbles you..i did okay in college (3.77 gpa) but once i stepped into the "real world" -- i had no clue wtf i was doing.
i almost had a panic attack my first few weeks..was doubting myself and wondering if accounting was the wrong field for me to go to.
but isn't m-1 essentially the same thing as what was covered in deferred tax assets/liabilities?
FAR - Feb 2012
AUD - May 2012
REG - TBD 2012
BEC - TBD 2012
Becker 2011+2012; NINJA 2011 review notesPosted 4 months ago # -
Justinnnn
offlineMember@CannotPassAgain
Try Schedule M-3 :)
What you said about "deferred tax assets" is somewhat true. The "M-1" adjustment is the change in your deferred tax asset or liability, but gross of tax, not net of tax.
For example, if your bad debt reserve increases from $100 to $200, your "M-1" adjustment is $100. At the end of the day, your deferred tax asset is the $200 X 35% tax rate (simplified, assuming constant tax rate and not considering state effective tax rate) = $70, assuming no valuation allowance. Your DTA gross of tax changed from $100 to $200, your DTA net of tax (the correct phrasing of deferred tax asset) changed from $35 to $75.
You might be freaking out now but don't worry you will understand very quickly, most of corporate tax isn't taught in college. Most of your common M-1s will be changes in TB accounts as the accounting methods were established by people before you. You will spend a lot of time figuring out why fixed assets don't roll forward. And I promise you, you will understand GAAP better than the guys in the audit department, if you are using a DTA approach to all of your M-1s.
REG 80 2/7/11
FAR 91 10/8/11
AUD 97 11/22/11
BEC 96 2/4/12Posted 4 months ago # -
CannotPassAgain
offlineMemberokay...i hope you're right. luckily i'll be able to practice in audit, too soon enough..yay.
i don't know if it'd help much even if i did corporate tax in college. i think it's just more of theory vs application i.e. school vs. work.
once again, work is humbling me. i just hope i can make it through my first busy season and come out a seasoned professional in the accounting world
FAR - Feb 2012
AUD - May 2012
REG - TBD 2012
BEC - TBD 2012
Becker 2011+2012; NINJA 2011 review notesPosted 4 months ago #
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