For a C corp, if the PPP was not forgiven as of 12/31/20, it remains on the balance sheet as a liability.
If it was forgiven as of that date, then needs to be entered as a book/tax reconciliation on Sch M-1, on line 7 with a description PPP loan forgiven on "date" (xx/xx/xxxx). It will appear on the books as Other Income and be part of the P&L.
