Comprehensive Problem 5-64 (LO 5-1, LO 5-2, LO 5-3) (Algo) $ 246,000 2,460,000 25,600 221,400 369,000 49,200 55,350 19,600 12,300 36,900 66,500 29,600 51,200 381,300 Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2024, it reported financial statement income after taxes of $1,653,650. Timpanogos provided the following information relating to its activities for the year: 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 2024 Rental income payments received in 2023 but earned in 2024 Rental income payments received in 2024 but not earned by year-end Tax depreciation Book Depreciation Net capital loss Federal income tax expense for books 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. Return to question