The PPP loan forgiveness amount belongs in Retained Earnings, since it is book income. It shows on line 25, so the total of the two is correct. So, you need to add the amount listed on line 25 to the amount on line 24 and remove the line 25 entry.
You can use the Forms Mode to bring up Form 1120-S p3-5. On schedule M-2 you can make entries directly on line 3. You can also delete the entry on line 25. You can click on the number listed on line 24 Retained earnings and you will see a spy glass icon that you can use to bring up the Schedule M-2/Retained Earnings Worksheet to make changed to retained earnings.
@mcd8
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
