Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2021, it reported financial statement income after taxes of $1,435,940. 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) Premiums 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 income payments received and earned in 2021 Rental income payments received in 2020 but earned in 2021 Rental income payments received in 2021 but not earned by year-end Tax depreciation Book Depreciation Net capital loss Federal income tax expense for books in 2021 $ 214,000 2,140,000 22,470 192,600 321,000 42,800 48,150 16,050 10,700 32,100 58,850 26,750 44,940 331,700 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 for 2021. Req A and B Schedule M1 Req D Complete Schedule M-1 for Timpanogos. (Enter all values as positive numbers.) Schedule M- 1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions. 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): 7 Income recorded on books this year not included on this return (itemize): Tax-exempt interest 5 Expenses recorded on books this year not deducted on this return (itemize): a Depreciation b Charitable contributions c Travel and entertainment Other (itemize): 8 Deductions on this return not charged against book income this year (itemize): a Depreciation b Charitable contributions c Other (itemize): 6 Add lines 1 through 5 9 Add lines 7 and 8 10 Income (page 1, line 28)-line 6 less line 9