Timpanogos Inc is an accrual method calendar year corporation For 2017, it reported financial statement income after taxes of $1,152,000 Timpanogos provided the following information relating to its 2017 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 Overhead costs that were expensed for book purposes but are included in ending inventory for tax purposes under 263A 50,000 Overhead costs that were expensed for book purposes in 2016 but were included in 2016 ending inventory All 2016 ending inventory was sold in 2017 60,000 Cost of goods sold for book purposes 300,000 Interest income on private activity tax exempt bonds issued in 2016 40,000 Interest paid on loan obtained to purchase tax exempt bonds 45,000 Rental income payments received and earned in 2017 15,000 Rental income payments received in 2016 but earned in 2017 10,000 Rental income payments received in 2017 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 2017 500,000 Timpanogos did not qualify for the domestic production activities deduction Required Complete Schedule M 1 for Timpanogos Complete Schedule M 1 for Timpanogos Schedule M 1 Reconciliation of Income (Loss) per Books With Income per Return 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 Life insurance premiums 6 Total 7 Income recorded on books this year not included on this return (itemize) Tax exempt interest Life insurance proceeds from CEOs death Rental income 8 Deductions on this return not charged against book income this year (itemize) a Depreciation b Charitable contributions Sec 263A costs 9 Total 10 Income

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Timpanogos Inc. is an accrual-method calendar-year corporation. For 2017, it reported financial statement income after taxes of $1,152,000. Timpanogos provided the following information relating to

Timpanogos Inc. is an accrual-method calendar-year corporation. For 2017, it reported financial statement income after taxes of $1,152,000. Timpanogos provided the following information relating to its 2017 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
Overhead costs that were expensed for book purposes but are included in ending inventory for tax purposes under 263A		50,000
Overhead costs that were expensed for book purposes in 2016 but were included in 2016 ending inventory. All 2016 ending inventory was sold in 2017.		60,000
Cost of goods sold for book purposes		300,000
Interest income on private activity tax-exempt bonds issued in 2016.		40,000
Interest paid on loan obtained to purchase tax-exempt bonds		45,000
Rental income payments received and earned in 2017		15,000
Rental income payments received in 2016 but earned in 2017		10,000
Rental income payments received in 2017 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 2017		500,000

Timpanogos did not qualify for the domestic production activities deduction. Required:

Complete Schedule M-1 for Timpanogos.

Schedule M-1: Reconciliation of Income (Loss) per Books With Income per Return
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
	Life insurance premiums
6.	Total
7.	Income recorded on books this year not included on this return (itemize):
	Tax-exempt interest
	Life insurance proceeds from CEOs death
	Rental income
8.	Deductions on this return not charged against book income this year (itemize):
	a. Depreciation
	b. Charitable contributions
	Sec. 263A costs
9.	Total
10.	Income