Module 2 Tax Return Problems i 1 Saved Help Save & Exit Submit 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. Qualified charitable contributions 18.75 points Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2021, it reported financial statement income after taxes of $1,677,500. Timpanogos provided the following information relating to its 2021 activities: 2,500,000 26,250 $ 250,000 Cost of goods sold for book and tax purposes eBook Ask Rental income payments received and earned in 2021 Interest income on tax-exempt bonds Interest paid on loan obtained to purchase tax-exempt bonds Rental income payments received in 2020 but earned in 2021 References Rental income payments received in 2021 but not earned by year-end Tax depreciation 225,000 375,000 50,000 56,250 18,750 12,500 37,500 68,750 31,250 52,500 387,500 Book Depreciation Net capital loss Federal income tax expense for books in 2021 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 for 2021. Complete this question by entering your answers in the tabs below. Check my work