Knowledge Base

11645: 1120 - EF Message 0123 on Final Year

1120 Corporation

A final year corporate return is producing EF Message 0123. This message says I have a balance remaining at the end of year on Schedule M-2 line 8, but my M-2 line 8 is zero. How would I resolve this?

EF message 0123:

ENDING UNAPPROPRIATED RETAINED EARNINGS: this return is marked as a "Final return" on screen 1, and there is a balance remaining at the end of the year on Schedule M-2, line 8.

Enter a "liquidating adjustment" amount on screen M2 for line 3 or line 6 to adjust the end-of-the-year unappropriated retained earnings to "0" (zero).

When an 1120 is marked as a final year return, the software forces a zero on line 8 of the M-2.

To balance the Schedule M-2, enter a liquidating adjustment amount on line 3 (Increases other than net income per books) or line 6 (Other decreases) on screen M2.

Also In This Category

On a scale of 1-5, please rate the helpfulness of this article

Not Helpful
Very Helpful
Optionally provide private feedback to help us improve this article...

Thank you for your feedback!

Article has been viewed 9.3K times.
Last Modified: 6 Months Ago
Article not rated yet.