Which item does not appear on Schedule K of Form 1120S?
A) Intangible drilling costs.
B) Foreign loss.
C) Utilities expense.
D) Recovery of a tax benefit.
E) All of these items appear on Schedule K.

Question

Quizplus · Accepted Answer

Schedule K of Form 1120S is used to report items of income, deductions, credits, etc., that affect shareholders' individual tax returns. Intangible drilling costs, foreign loss, and recovery of a tax benefit are the types of items that might be reported on Schedule K because they can affect shareholders' tax liabilities. Utilities expense, however, is a regular business expense and does not specifically appear on Schedule K; it would be part of the ordinary business expenses reported elsewhere on the tax return.

Which Item Does Not Appear on Schedule K of Form