Hey....does the "retained earning" on line 24 in the schedule L section needs to match the "end of the year balance" on line 8 in the M-2 section?

[bqn7035]

I noticed that my cpa always match those two numbers up when filing my 1120s return.

[Rick19744]

I would say in general that should be the case.  Exceptions would be:

• If the S corporation was a prior C corporation
• If the S corporation acquired a C corporation
• If the S corporation incurred losses and also made distributions there is a possibility that these two line may not agree in some situations.