Comprehensive Problem 16-64 (LO 16-1, LO 16-2, LO 16-3) (Algo) Timpanogos Incorporated is an accrual-method, calendar year corporation. For 2021, it reported financial statement income after taxes of $1,422.520. Timpanogos provided the following information relating to its 2021 activities: Life insurance proceeds as a result of cro' death Revenue from sales (for both book and tax purposes) $ 212,000 2.120.000 Prentuna pale on the day-person 11to Insurance policies. The policies have no cash rutrendae value 22,260 Qualified charitable contributions Cost of goods sold for book and tax purposes 190.800 318,000 Interest income on tax-exempt bonda 42,400 Tnterest paid on loan obtained to purchase tax-exempt bonds 47,700 Rental income payments received and earned in 2021 15.900 Rental income payments received in 2020 but earned in 2021 10.600 Rental income payments received in 2021 but not earned by year-end 31,800 Tex depreciation 58,300 Book Depreciation 26,500 Net capital loa 44.520 Federal income tax expense for books in 2021 328,600 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 (1) c. Complete Schedule M-1 for Timpanogos. d. Compute Timpanogos Incorporated's tax liability for 2021. Required: a. Reconcile book income to taxable income for Timpanogos Incorporated. Be sure to start with book income and Identity all of the adjustments necessary to arrive at taxable income b. Identity ench book-tax difference as either permanent (P) or temporary (1) c. Complete Schedule M-1 for Timpanogos. d. Compute Timpanogos Incorporated's tax liability for 2021 Complete this question by entering your answers in the tabs below. Reg A and schedule M1 RegD Reconcile book income to taxable income for Timpanoges Incorporated. Be ware to start with book income i dentity of the adjustments necessary to ove temebi nome book tax difference as either permanent (P) or temporary (T). (Negative amounts should be indicated by a minus g. Leve no owwer blank ter were applicable Box Description to income (Dry C 5 2.000.000 Permanent Temporary Pemant Por adjustments Terry Income Dr $ 2.000.000 $ $ 2.000.000 Revene from ales Cost of goods sold Gross pro 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 capituloss Depreciation Life Insurance premiums Federal income tax expense Total expenses before charitable contribution, NOL, and DRD - 13 Next Description Book Income D C Book ment (0) Permanent (P) Temporary m Ho adjustment Pemer CA Temperayitner $ 2,000,000 $ 2,000,000 $ $ 2.000.000 Revenue from Cost of goods sold Gross proti Other income Life Insurance proceeds from CEO's death Interest income on tax-exempt bonds Rental income Gross income Expenses Infinest paid to obtain exempt bonds Nel capital oss Depreciation Life Insurance premium Federal income tax expense Total expenses before charitable contribution, NOL, and ORD Income before charitable contribution, NOL, and ORD NOL Garryover from priory Taxable income for charitable contribution limitation purposes Charitable contribution Book/Table income 0 0 $ OS 0 0 5 RESA Schedule MI) Re A and B Schedule M1 Red D Complete Schedule M-1 for Timpanoges. (Enter al values as positive numbers) Schedule M-1 Reconciliation of income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3 See Instructions + Net income per book 1.142.000 > Federal income tax per books Excess of capital catat Income to tax not corded on books this year Incomodadobo nero inted on this room Tampines De on return of charged 5 Expenses recorded on his year onducted on that the Rainbock income this year Det Depreca Chatbonton Chartati contribution Travel and entertainment e Omerdem Other.com 09 Address 5 Addestra line 26 THIS FORMS A SIMULATION OF AN OFFICIAL U.S. TAX FORM, IT IS NOT THE OFFICIAL FORM ITSELE DO NOT USE THIS FORM FOR TAX FIUNOS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL 2021 Merwe Education Reg A and B ReqD>
