In an 1120, 1120S or 1065, where does the amount on line 1 of the M-1 come from?
The Schedule M-1 in the program is calculated in reverse of the sequence on the form, so that the figure on line 1 of the M-1 is calculated as follows:
Income from Analysis of Net Income, page 5, line 1 of the return
plus lines 6 and 7
less lines 2 through 4
Income from page 1, line 28 of the return
plus amounts reported on lines 7 and 8
less amounts reported on lines 2 through 5.
Income from Sch. K, line 18 of the return
plus lines 5 and 6
less lines 2 and 3.