Purpose of Schedule

Schedule M-3, Part I, asks certain questions about the corporation's financial statements and reconciles financial statement net income (loss) for the corporation (or consolidated financial statement group, if applicable), as reported on Part I, line 4a, to net income (loss) of the corporation for U.S. taxable income purposes, as reported on Part I, line 11.

Schedule M-3, Parts II and III, reconcile financial statement net income (loss) for the U.S. corporation (or consolidated tax group, if applicable), as reported on Schedule M-3, Part I, line 11, to taxable income on Form 1120, page 1, line 28.