Canary Corporation,which sustained a $5,000 net short-term capital loss during the year,will enter $5,000 as an addition on Schedule M-1.

Question

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A net short-term capital loss is entered as an addition on Schedule M-1.The loss is deductible for book purposes but not for tax purposes.Therefore,the $5,000 capital loss must be added in reconciling from book income to taxable income.

Canary Corporation,which Sustained a $5,000 Net Short-Term Capital Loss During