Timpanogos Incorporated is an accrual$-$method, calendar$-$year corporation. For $2023,$ it reported financial statement income after taxes of $$1,545,250.$ 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 recelved 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

$$230,000$

$2,300,000$

$24,000$

$207,000$

$345,000$

$46,000$

$51,750$

$18,000$

$11,500$

$34,500$

$62,500$

$28,000$

$48,000$

$356,500$

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 this question by entering your answers in the tabs below.

Required $A$

Required C

Required D

Complete Schedule M$-1$ for Timpanogos.

Note: Enter all values as positive numbers.

$\backslash$table$[[$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 CEO's death,$],[8.$ Deductions on this return not charged against book income this year $($itemize$)$:$,],[$a$.$ Depreciation,$],[$b$.$ Charitable contributions,$],[$Section $263$ A costs,$],[9.$ Total,$],[10.$ Income,$]]$