Reconciliation of Income and Analysis of Retained Earnings |

Reconciliation of Income (Loss) and Analysis of Unappropriated Retained Earnings per Books ▶Go towww.irs.gov/Form1120Ffor the latest information. ▶Attach to Form 1120-F. OMB No. 1545-0123 2021 Name of corporationEmployer identification number Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note:The corporation may be required to file Schedule M-3 (see instructions). 1Net income (loss) per books .....2Federal income tax per books .... 3Excess of capital losses over capital gains4Income subject to tax not recorded on books this year (itemize): 5Expenses recorded on books this year not deducted on this return (itemize): aDepreciation ....$bCharitable contributions$cTravel and entertainment$ dOther (itemize): 6Add lines 1 through 5 ....... 7Income recorded on books this year not included on this return (itemize): aTax-exempt interest$ bOther (itemize): 8Deductions on this return not charged against book income this year (itemize): aDepreciation..$ bCharitable contributions$ cOther (itemize): 9Add lines 7 and 8 ....... 10Income—line 6 less line 9.... Schedule M-2Analysis of Unappropriated Retained Earnings per Books 1Balance at beginning of year....2Net income (loss) per books .....3Other increases (itemize):4Add lines 1, 2, and 3.......5Distributions:aCash.... bStock .... cProperty ... 6Other decreases (itemize): 7Add lines 5 and 6 ....... 8Balance at end of year (line 4 less line 7) Who Must File Generally, any foreign corporation that is required to complete Form 1120-F, Section II must complete Schedules M-1 and M-2 (Form 1120-F). However, the following rules apply. Do not complete Schedules M-1, M-2, and M-3 if total assets at the end of the tax year (Schedule L, line 17, column (d)) are less than $25,000.Complete Schedule M-3 in lieu of Schedule M-1 if total assets at the end of the tax year that are reportable onSchedule L are $10 million or more.A corporation filing Form 1120-F that is not required to file Schedule M-3 may voluntarily file Schedule M-3 instead of Schedule M-1. See the Instructions for Schedule M-3 (Form 1120-F) for more information. Foreign corporations that(a)are required to file a Schedule M-3 (Form 1120-F) and have less than $50 million in total assets at the end of the tax year, or (b)are not required to file a Schedule M-3 (Form 1120-F) and voluntarily file a Schedule M-3 (Form 1120-F) must either (1)complete Schedule M-3 (Form 1120-F) entirely, or(2)complete Schedule M-3 (Form 1120-F) through Part I and complete Schedule M-1 instead of completing Parts II and III of ScheduleM-3 (Form 1120-F). If the foreigncorporation chooses(2), then ScheduleM-1, line 1 must equal Schedule M-3(Form 1120-F), Part I, line 11. See the Instructions for Schedule M-3 (Form 1120-F) for more information. Note:If Schedule M-3 is completed in lieu of Schedule M-1, the corporation is still required to complete Schedule M-2. Specific InstructionsSchedule M-1 Line 1. Net income (loss) per books. The foreign corporation must report on line 1 of Schedule M-1 the net income (loss) per the set(s) of books takeninto account on Schedule L. Line 5c. Travel and entertainment expenses.Include any of the following. • Entertainment expenses not deductibleunder section 274(a).• Meal expenses not deductible under section 274(n). • Expenses for the use of an entertainment facility. • The part of business gifts over $25. • Expenses of an individual over $2,000 that are allocable to conventions on cruise ships. • Employee achievement awards of non- tangible property or of tangible property if the value is over $400 ($1,600 if part of a qualified plan). • The part of luxury water travel expenses not deductible under section 274(m). • Expenses for travel as a form of education. • Other nondeductible travel and entertainment expenses. Line 7a. Tax-exempt interest.Report any tax-exempt interest received or accrued, including any exempt-interest dividends received as a shareholder in a mutual fund or other regulated investment company. Also report this same amount in item P at the top of page 2 of Form 1120-F. Schedule M-2 Line 1. Beginning balance of unappropriated retained earnings. Enter the beginning balance of unappropriated retained earnings per the set(s) of books taken into account on Schedule L. Note:For additional information for Schedule M-2 reporting, see the Instructions for Schedule M-3 (Form 1120-F).