Timpanogos Incorporated is an accrual-method, calendar-year cfpot of $1,543.300. Timpanogos provided the following information relating to its 2021 activities: Life insurance proceeds as a result of CEO's death Revenue from sales (for both book and tax purposes) Preniums paid on the key-person life insurance policies. The policies have no cash surrender value. Qualified 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 incone paynents received and earned in 2021 Rental income paynents received in 2020 but earned in 2021 Rental income payeents received in 2021 but not earned by year-end Tax depreciation Book Depreciation Net capital loss Federal incone tax expense for books in 2021 $ 230,000 2,300, 000 24,150 207,000 345,000 46,000 51,750 17,250 11,500 34,500 63,250 28,750 48, 300 356, 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 lability for 2021. UOKK e peman (P) of tepAaly ( Book-tax Book tax adjustments (Dr) Permanent (P) or Temporary (T) Permanent (P) or Temporary (T) Taxable Income (Dr) Cr Book Income adjustments Cr Description (Dr) Cr. Revenue trom sales Cost of goods sold Gross profit Other income Life insuance proceeds trom CEO's death Interest income on tax exempt bonds Rontal income Gross income Expenses Interest paid to obtain ta eempt bonds Net captal loss Depreciation Lite insurance premiums Federal income tax expense Total expenses betore chartable contribution NOL and DRD Income befoe chartabe contributon, NOL, and DRD NOL Carryover from pror veat Taxable ncome for chartabe contibuton intation purposes Chartable contributons Book/Taxatin income Schedde MI >