1120 Schedule L simple question

[Pacun]

Are these companies required to fill out Schedule L in form 1120:

Company A:
Gross receipts: $350K
Assets $100K.

Company B:
Gross receipts: $200K
Assets: $100K

Company C.
Gross receipts 100K
Assets: $500K.

[Lion EA]

Form 1120 (2024) Page 5

Schedule K Other Information (continued from page 4)

13 Are the corporation’s total receipts (page 1, line 1a, plus lines 4 through 10) for the tax year and its total assets at the end of the tax year less than $250,000? . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

If “Yes,” the corporation is not required to complete Schedules L, M-1, and M-2. Instead, enter the total amount of cash distributions and the book value of property distributions (other than cash) made during this tax year $____________________

[Pacun]

The reason, I am asking is because someone said that both conditions must be meet. AND the way he was explaining it sounded that more that $250 in receipts AND more than $250 in assets for the condition to be meat. 

The way I understood (before his explanation) was that if the sum of both above $250K would require Sch L.

Please fill free to answer examples A, B and C above.

 

[jklcpa]

None of the examples in the original post would need to include Schs L, M-1, or M-2.

Your friend is correct. 

Both components must be over $250K to require the schedules. The test is NOT with them added together. 

[Abby Normal]

I would NEVER do a return without Sch L because it proves that the return is in balance.

[Lee B]

25 minutes ago, Abby Normal said:

I would NEVER do a return without Sch L because it proves that the return is in balance.

I totally agree with the exception of small partnership returns.

[jasdlm]

1 hour ago, Abby Normal said:

I would NEVER do a return without Sch L because it proves that the return is in balance.

100% agree.  Every corporate/partnership I do goes with Schedule L.

[jklcpa]

1 hour ago, Abby Normal said:

I would NEVER do a return without Sch L because it proves that the return is in balance.

I agree with you. In the cases where not required, the returns are filed without those schedules, but I do prepare and print the Schs L, M-1, and M-2 for my file.  That time is minimal, and excluding from the efile is a matter of unchecked a box.

[BrewOne]

I stopped including with the return when ATX stopped allowing me to fill it out without having to say (lie) that the form was required.