58. Timpanogos Inc. is an accrual-method calendar-year corporation. For 2018, it re- ported financial statement income after taxes of $1,152,000. Timpanogos provided the following information relating to its 2018 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. 200,000 2,000,000 21,000 The policies have no cash surrender value Charitable contributions Cost of goods sold for book and tax purposes Interest income on tax-exempt bonds issued in 2017 Interest paid on loan obtained to purchase tax-exempt bonds Rental income payments received and earned in 2018 Rental income payments received in 2017 but earned in 2018 Rental income payments received in 2018 but not eaned by 180,000 300,000 40,000 45,000 15,000 10,000 30,000 year-end MACRS depreciation Book depreciation Net capital loss Federal income tax expense for books in 2018 55,000 25,000 42,000 500,000 Required a) Reconcile book income to taxable income for Timpanogos Inc. Be sure to start with book income and identify all of the adjustments necessary to arrive at tax able income. b) Identify each book-tax difference as either permanent or temporary c) Complete Schedule M-1 for Timpanogos d) Compute Timpanogos Inc.'s tax liability for 2018