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Timpanogos Incorporated is an accrual - method, calendar - year corporation. For 2 0 2 3 , it reported financial statement income after taxes of

Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2023, it reported financial statement income after taxes of $1,382,650. Timpanogos provided the following information relating to its activities for the year:
Life insurance proceeds as a result of CEO's death $ 206,000
Revenue from sales (for both book and tax purposes)2,060,000
Premiums paid on the key-person life insurance policies. The policies have no cash surrender value. 21,600
Charitable contributions 185,400
Cost of goods sold for book and tax purposes 309,000
Interest income on tax-exempt bonds 41,200
Interest paid on loan obtained to purchase tax-exempt bonds 46,350
Rental income payments received and earned in 202315,600
Rental income payments received in 2022 but earned in 202310,300
Rental income payments received in 2023 but not earned by year-end 30,900
Tax depreciation 56,500
Book Depreciation 25,600
Net capital loss 43,200
Federal income tax expense for books 319,300
Required:
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.
Identify each book-tax difference as either permanent (P) or temporary (T).
Complete Schedule M-1 for Timpanogos.
Compute Timpanogos Incorporated's tax liability.
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