Timpanogos Inc. is an accrual-method calendar-year corporation. For 2016, it reported financial statement income after taxes of $1,149,000. Timpanogos provided the following information relating to its 2016 activities:

Life insurance proceeds as a result of CEOs death	$	200,000
Revenue from sales (for both book and tax purposes)		2,000,000
Premiums paid on the key-person life insurance policies. The policies have no cash surrender value.		21,000
Charitable contributions		180,000
Interest income on private activity tax-exempt bonds issued in 2014.		40,000
Interest paid on loan obtained to purchase tax-exempt bonds		45,000
Rental income payments received and earned in 2016		15,000
Rental income payments received in 2015 but earned in 2016		10,000
Rental income payments received in 2016 but not earned by year-end		30,000
MACRS depreciation		55,000
Book Depreciation		25,000
Alternative minimum tax depreciation		50,000
Net capital loss		42,000
Federal income tax expense for books in 2016		500,000

Timpanogos did not qualify for the domestic production activities deduction.(Leave no answer blank. Enter zero if applicable.)

a.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 taxable income.