Comprehensive Problem $5-64($LO $5-1,$ LO $5-2,$ LO $5-3)($Algo$)$

Timpanogos Incorporated is an accrual$-$method, calendar$-$year corporation. For $2024,$ it reportedcifianciahstatement inicomre after

taxes of $$1,667,200.$ Timpanogos provided the following information relating to its activities for theyear:

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 ivalue.

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.