This module covers Schedule K, including the identification and summary of separately stated items and the preparation and application of Schedules K-2 and K-3. Key exceptions to K-2 and K-3 reporting, including the domestic filing, §1116, and small business exceptions, are addressed. The module also explores Schedule M-1 and Schedule M-3, with a focus on identifying and classifying permanent and temporary book-to-tax adjustments. Concepts are reinforced through two case studies, discussion questions, and research-based exercises that support accurate tax reporting and analysis.