Timpanogos Incorporated is an accrual$-$method, calendar$-$year corporation. For $2022,$ it reported financial statement income after taxes of $$1,545,250.$ Timpanogos provided the following information relating to its $2022$ activities:

$\backslash$table$[[\backslash$table$[[$Life insurance proceeds as a result of CEO's death$],[$Revenue from sales $($for both book and tax purposes$)]],\backslash$table$[[$$$230,000],[2,300,000]]],[$Premiums paid on the key$-$person life insurance policies. The policies have no cash surrender value.,$24,000],[$Charitable contributions,$207,000],[$Cost of goods sold for book and tax purposes,$345,000],[$Interest income on tax$-$exempt bonds,$46,000],[$Interest paid on loan obtained to purchase tax$-$exempt bonds,$51,758],[$Rental income payments received and earned in $2022,18,000],[$Rental income payments received in $2021$ but earned in $2022,11,500],[$Rental income payments received in $2022$ but not earned by year$-$end,$34,500],[$Tax depreciation,$62,500],[$Book Depreciation,$28,600],[$Net capital loss,$48,000],[$Federal income tax expense for books in $2022,356,500]]$

Required:

a$.$ 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.

b$.$ Identify each book$-$tax difference as either permanent $($P$)$ or temporary $($T$).$

c$.$ Complete Schedule M$-1$ for Timpanogos.

d$.$ Compute Timpanogos Incorporated's tax liability.

Complete Schedule M$-1$ for Timpanogos.

Note: Enter all values as positive numbers.

$\begin{array}{cc}\text{S}\text{c}\text{h}\text{e}\text{d}\text{u}\text{l}\text{e}M-1\text{:}\text{R}\text{e}\text{c}\text{o}\text{n}\text{c}\text{i}\text{l}\text{i}\text{a}\text{t}\text{i}\text{o}\text{n}of\text{I}\text{n}\text{c}\text{o}\text{m}\text{e}(Loss)\text{p}\text{e}\text{r}\text{B}\text{o}\text{o}\text{k}\text{s}\text{W}\text{i}\text{t}\text{h}\text{I}\text{n}\text{c}\text{o}\text{m}\text{e}\text{p}\text{e}\text{r}\text{R}\text{e}\text{t}\text{u}\text{r}\text{n}& ?\\ 1.\text{N}\text{e}\text{t}\text{i}\text{n}\text{c}\text{o}\text{m}\text{e}(loss)\text{p}\text{e}\text{r}\text{b}\text{o}\text{o}\text{k}\text{s}& ?\\ 2.\text{F}\text{e}\text{d}\text{e}\text{r}\text{a}\text{l}\text{i}\text{n}\text{c}\text{o}\text{m}\text{e}\text{t}\text{a}\text{x}\text{p}\text{e}\text{r}\text{b}\text{o}\text{o}\text{k}\text{s}& ?\\ 3.\text{E}\text{x}\text{c}\text{e}\text{s}\text{s}of\text{c}\text{a}\text{p}\text{i}\text{t}\text{a}\text{l}\text{l}\text{o}\text{s}\text{s}\text{e}\text{s}\text{o}\text{v}\text{e}\text{r}\text{c}\text{a}\text{p}\text{i}\text{t}\text{a}\text{l}\text{g}\text{a}\text{i}\text{n}\text{s}& ?\\ 4.\text{I}\text{n}\text{c}\text{o}\text{m}\text{e}\text{s}\text{u}\text{b}\text{j}\text{e}\text{c}\text{t}to\text{t}\text{a}\text{x}\text{n}\text{o}\text{t}\text{r}\text{e}\text{c}\text{o}\text{r}\text{d}\text{e}\text{d}on\text{b}\text{o}\text{o}\text{k}\text{s}\text{t}\text{h}\text{i}\text{s}\text{y}\text{e}\text{a}\text{r}(itemize)\text{:}& ?\\ \text{R}\text{e}\text{n}\text{t}\text{a}\text{l}\text{i}\text{n}\text{c}\text{o}\text{m}\text{e}& ?\\ 5.\text{E}\text{x}\text{p}\text{e}\text{n}\text{s}\text{e}\text{s}\text{r}\text{e}\text{c}\text{o}\text{r}\text{d}\text{e}\text{d}on\text{b}\text{o}\text{o}\text{k}\text{s}\text{t}\text{h}\text{i}\text{s}\text{y}\text{e}\text{a}\text{r}\text{n}\text{o}\text{t}\text{d}\text{e}\text{d}\text{u}\text{c}\text{t}\text{e}\text{d}on\text{t}\text{h}\text{i}\text{s}\text{r}\text{e}\text{t}\text{u}\text{r}\text{n}(itemize)\text{:}& ?\\ a.\text{D}\text{e}\text{p}\text{r}\text{e}\text{c}\text{i}\text{a}\text{t}\text{i}\text{o}\text{n}& ?\\ b.\text{C}\text{h}\text{a}\text{r}\text{i}\text{t}\text{a}\text{b}\text{l}\text{e}\text{c}\text{o}\text{n}\text{t}\text{r}\text{i}\text{b}\text{u}\text{t}\text{i}\text{o}\text{n}\text{s}& ?\\ c.\text{T}\text{r}\text{a}\text{v}\text{e}\text{l}\text{a}\text{n}\text{d}\text{e}\text{n}\text{t}\text{e}\text{r}\text{t}\text{a}\text{i}\text{n}\text{m}\text{e}\text{n}\text{t}& ?\\ \text{I}\text{n}\text{t}\text{e}\text{r}\text{e}\text{s}\text{t}\text{p}\text{a}\text{i}\text{d}to\text{o}\text{b}\text{t}\text{a}\text{i}\text{n}\text{t}\text{a}\text{x}-\text{e}\text{x}\text{e}\text{m}\text{p}\text{t}\text{b}\text{o}\text{n}\text{d}\text{s}& ?\\ \text{L}\text{i}\text{f}\text{e}\text{i}\text{n}\text{s}\text{u}\text{r}\text{a}\text{n}\text{c}\text{e}\text{p}\text{r}\text{e}\text{m}\text{i}\text{u}\text{m}\text{s}& ?\\ 6.\text{T}\text{o}\text{t}\text{a}\text{l}& ?\\ 7.\text{I}\text{n}\text{c}\text{o}\text{m}\text{e}\text{r}\text{e}\text{c}\text{o}\text{r}\text{d}\text{e}\text{d}on\text{b}\text{o}\text{o}\text{k}\text{s}\text{t}\text{h}\text{i}\text{s}\text{y}\text{e}\text{a}\text{r}\text{n}\text{o}\text{t}\text{i}\text{n}\text{c}\text{l}\text{u}\text{d}\text{e}\text{d}on\text{t}\text{h}\text{i}\text{s}\text{r}\text{e}\text{t}\text{u}\text{r}\text{n}(itemize)\text{:}& ?\\ \text{T}\text{a}\text{x}-\text{e}\text{x}\text{e}\text{m}\text{p}\text{t}\text{i}\text{n}\text{t}\text{e}\text{r}\text{e}\text{s}\text{t}& ?\\ \text{L}\text{i}\text{f}\text{e}\text{i}\text{n}\text{s}\text{u}\text{r}\text{a}\text{n}\text{c}\text{e}\text{p}\text{r}\text{o}\text{c}\text{e}\text{e}\text{d}\text{s}\text{f}\text{r}\text{o}\text{m}\text{C}\text{E}\text{O}\text{'}\text{s}\text{d}\text{e}\text{a}\text{t}\text{h}& ?\\ 8.\text{D}\text{e}\text{d}\text{u}\text{c}\text{t}\text{i}\text{o}\text{n}\text{s}on\text{t}\text{h}\text{i}\text{s}\text{r}\text{e}\text{t}\text{u}\text{r}\text{n}\text{n}\text{o}\text{t}\text{c}\text{h}\text{a}\text{r}\text{g}\text{e}\text{d}\text{a}\text{g}\text{a}\text{i}\text{n}\text{s}\text{t}\text{b}\text{o}\text{o}\text{k}\text{i}\text{n}\text{c}\text{o}\text{m}\text{e}\text{t}\text{h}\text{i}\text{s}\text{y}\text{e}\text{a}\text{r}(itemize)\text{:}& ?\\ a.\text{D}\text{e}\text{p}\text{r}\text{e}\text{c}\text{i}\text{a}\text{t}\text{i}\text{o}\text{n}& ?\\ b.\text{C}\text{h}\text{a}\text{r}\text{i}\text{t}\text{a}\text{b}\text{l}\text{e}\text{c}\text{o}\text{n}\text{t}\text{r}\text{i}\text{b}\text{u}\text{t}\text{i}\text{o}\text{n}\text{s}& ?\\ \text{S}\text{e}\text{c}\text{t}\text{i}\text{o}\text{n}263\text{A}costs& ?\\ 9.\text{T}\text{o}\text{t}\text{a}\text{l}& ?\\ 10.\text{I}\text{n}\text{c}\text{o}\text{m}\text{e}& ?\end{array}$

Required A and

Required C

Required D

Compute Timpanogos Incorporated's tax liability.

Tax liability