The net income (loss) per books amount that appears on Line 1 of Schedule M-1 Reconciliation of Income (Loss) and Analysis of Unappropriated Retained Earnings per Books is a calculated field and will change when an adjustment amount is entered on the other lines of the Schedule M-1.
There are a few predetermined adjustment lines on Schedule M-1 like 50% of travel and entertainment expenses, depreciation, tax exempt interest and a worksheet to enter other adjustment amounts.
When an adjustment amount is entered that net income (loss) per books should change to reflect the adjustment amount entered.
If the Schedule M-1 net income (loss) per books amount does not match the net income per books an adjustment amount will need to be entered on the predetermined adjustment lines and/or the other adjustment worksheet.
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.