Timpanogos Incorporated is an accrual$-$method, calendar$-$year corporation. For $2023,$ it reported financial statement income after

taxes of $$1,558,800.$ Timpanogos provided the following information relating to its activities for the year:

Life insurance proceeds as a result of CEO's death

Revenue from sales $($for both book and tax purposes$)$

Premiums paid on the key$-$person life insurance policies. The policies have no cash surrender value.

Charitable contributions

Cost of goods sold for book and tax purposes

Interest income on tax$-$exempt bonds

Interest paid on loan obtained to purchase tax$-$exempt bonds

Rental income payments received and earned in $2023$

Rental income payments received in $2022$ but earned in $2023$

Rental income payments received in $2023$ but not earned by year$-$end

Tax depreciation

Book Depreciation

Net capital loss

Federal income tax expense for books

$$232,000$

$2,320,000$

$24,200$

$208,800$

$348,000$

$46,400$

$52,200$

$18,200$

$11,600$

$34,800$

$63,000$

$28,200$

$48,400$

$359,600$

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.