Hello all,

On Schedule M-1 of an 1120 C-Corp Tax Return:

I'm running into an issue where I input the Dividends Received Deduction in  "Deductions not Charged Against Book Income" section. This is for a Book - Tax adjustment. Pro Connect says you have to manually enter this adjustment which makes sense. 

However, when I input the $40,000 DRD it also increases the Net Income (loss) per books on line 1 thereby completely throwing off the M-1 and M-2 calculations. 

Any ideas? Your time is greatly appreciated.