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M-2 and Retained Earnings
10/30/09 8:37 AM, Viewed by asker 10/30/09 9:04 AM
Total Views: 46
Total Views: 46
Will line 8 on the M-2 and line 24 (R.E) always agree? I took $30,000 woth of Section 179, and of course that flows through to the two Sub S shaeholders, but the 179 is an adjustment on the M-@, but not on the balace sheet. Does this sound right?
All Replies: Answers (1)
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Answer
10/30/09 8:53 AM
AAA is not always the same as Retained Earnings.
That said, Sec 179 does affect the balance sheet, if Sch L is a tax-basis balance sheet. (If Sch L is book-basis, you'd certainly not expect AAA to match RE.) Debit RE, Credit 10b Accumulated Depreciation.
Hey, we get sig files now! Cool - I wonder what I'll put here? Ah, I know: RTFM.
