Timpanogos Inc. is an accrual-method calendar-year corporation. For 2018, it reported financial statement income after taxes of $1,152,000. Timpanogos provided the following information relating to its 2018 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 Cost of goods sold for book and tax purposes 300,000 Interest income on tax-exempt bonds issued in 2017 40,000 Interest paid on loan obtained to purchase tax-exempt bonds 45,000 Rental income payments received and earned in 2018 15,000 Rental income payments received in 2017 but earned in 2018 10,000 Rental income payments received in 2018 but not earned by year-end 30,000 MACRS depreciation 55,000 Book Depreciation 25,000 Net capital loss 42,000 Federal income tax expense for books in 2018 500,000 Required: 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. Identify each book-tax difference as either permanent (P) or temporary (T). Complete Schedule M-1 for Timpanogos. Compute Timpanogos Inc.s tax liability for 2018.