Hello Forum Members,

I'm currently working on a return 1120 s and have encountered a discrepancy that I'm seeking guidance on. Here are the details:

• Net Income: -$4951
• Interest: $44
• Tax Net Income Loss: -$7942
• Book Net Income Loss: -$4932
• Tax Book Difference: $3010

Additionally, the charitable is in the NI calculation because  it is from inventory and it was retired from the books due to the donation.during. After I enter the charitable donation of 3035 it creates a discrepancy in the net income . I am unsure how to allocate it in Schedule M-1. Could someone please advise me on the correct way to allocate the charitable contribution in Schedule M-1 given these figures?

Any insights or suggestions would be greatly appreciated. Thank you in advance for your assistance!