Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please this is the second time i post this question. Make sure you send me an organized answer for requirement. PLEASE SEPARATE EACH REQUIREMENT AND
Please this is the second time i post this question. Make sure you send me an organized answer for requirement.
Timpanogos Inc. is an accrual method calendar year corporation. For 2020, it reported financial statement income after taxes of $1,342,000. Timpanogos provided the following information relating to its 2020 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. 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 2020 Rental income payments received in 2019 but earned in 2020 Rental income payments received in 2020 but not earned by year-end Tax depreciation Book Depreciation Net capital loss Federal income tax expense for books in 2020 $ 200,000 2,000,000 21,000 180,000 380,000 40,000 45,000 15,000 10,000 30,000 55.000 25,000 42,000 310,000 Required: a. Reconcile book income to taxable income for Timpanogos Inc Be sure to start with book income and identity all of the adjustments necessary to arrive at taxable income b. Identity each book-tax difference as either permanent (P) or temporary (1) c. Complete Schedule M-1 for Timpanogos. d. Compute Timpanogos Inc's tax liability for 2020. Complete this question by entering your answers in the tabs below. Reg A and B Reqc Reg D 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 ta Identify each book-tax difference as elther permanent (P) or temporary (T). Negative amounts should be indicated by a roinus sign. Leave no answer blank applicable) The Description Book Income Book tax adjustments Inicom (D) (01) CH Revenue from salos Cost of goods sold 5 0 Gions profit $ Other income Life insurance proceeds from CEO's death Interest income on tax-exempt bond Rental income Gross income $ Expanse 5 0 $ 5 5 Cost of goods sold Gross profit 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 Not capital loss Depreciation Life Insurance premiums Federal income tax expense Total expenses before charitable contribution, NOL and DRD Income before charitable contribution, NOL and DRD NOL carryover from prior year Taxable income for charitable contribution limitation purposes Claritable contributions Book Taxable income 5 5 0S 0 5 Complete this question by entering your answers in the tabs below. Reg A and B Reg C Reg D Complete Schedule M-1 for Timpanogos. (Enter all values as positive numbers.) Schedule M-1: Reconciliation of Income (Loss) per Books With Income per Retum 1. Net income (loss) per books 2. Federal income tax per books 3. Excess of capital losses over capital gains 4. Income subject to tax not recorded on books this year (itemize) Rental income 5. Expenses recorded on books this year not deducted on this return (itemize) a Depreciation b Charitable contributions c Travel and entertainment Interest paid to obtain tax-exempt bonds PLEASE SEPARATE EACH REQUIREMENT AND PLACE THE ANSWERS OF EACH IN A TABLE SIMILAR TO MINE!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started