$ 248,000 2,480,000 25,880 223,200 372,000 49,600 55,800 19,600 12,400 37,200 67,000 29,800 51,600 384,400 Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2022, it reported financial statement income after taxes of $1,667,200. Timpanogos provided the following information relating to its 2022 activities: Life insurance proceeds as a result of CEO's death Revenue from sales (for both book and tax purposes) Premiums paid on the key-person life insurance policies. The policies have no cash surrender value. Charitable contributions Cost of goods sold for book and tax purposes Interest income on tax-exempt bonds Interest paid on loan obtained to purchase tax-exempt bonds Rental income payments received and earned in 2022 Rental income payments received in 2021 but earned in 2022 Rental income payments received in 2022 but not earned by year-end Tax depreciation Book Depreciation Net capital loss Federal income tax expense for books in 2022 Required: a. Reconcile book income to taxable income for Timpanogos Incorporated. Be sure to start with book income and identify all of the adjustments necessary to arrive at taxable income. b. Identify each book-tax difference as either permanent (P) or temporary (T), c. Complete Schedule M-1 for Timpanogos. d. Compute Timpanogos Incorporated's tax liability. Revenue from sales Cost of goods sold Gross proft Other income Life Insurance proceeds from CEO's death Interest income on tax-exempt bonds Rental income Gross income Expenses Interest paid to obtain tax-exempt bonds Net capital o Depreciation. Life insurance premiums Federal income tax expense Total expenses before charitable contribution, NOL, and DRD income before charitable contribution, NOL, and DRD NOL Carryover from prior year Taxable income for chartable contribution limitation purposes Charitable contributions (after 10% limit Book/Taxable income 0 240,000 49,000 O 51,600 O 340200 P T 000 Return to question P P 0 248,000 P P T 0 0 P 4 " 1 IT 0 P IP P P D P P 0 P P 00 00 9 Schedule M 1: Reconciliation of Income (Loss) per Books With Income per Retum 1. Net income (loss) per books 2. Federal income tax per books 3. Excess of capital losses over capital gains 4. Income subject to tax not recorded on books this year (itemize): Rental income 5. Expenses recorded on books this year not deducted on this return (itemize); a. Depreciation b. Charitable contributions c. Travel and entertainment Interest paid to obtain tax-exempt bonds. Life insurance premiums 6. Total 7. Income recorded on books this year not included on this return (itemize) Tax-exempt interest Life insurance proceeds from CEO's death 8. Deductions on this return not charged against book income this year (itemize): a. Depreciation b. Charitable contributions Section 263A costs 9. Total 10. Income Required A and B. Required D 0 $ 0 a. Reconcile book income to taxable income for Timpanogos Incorporated. Be sure to start with book income and identify all of the adjustments necessary to arrive at taxable income. b. identify each book-tax difference as either permanent (P) or temporary (T) c. Complete Schedule M-1 for Timpanogos d. Compute Timpanogos Incorporated's tax liability Complete this question by entering your answers in the tabs below. Required A and B) Required C Required D Compute Timpanogos Incorporated's tax liability. Tax liability $ 61,400