Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2021, it reported financial statement income after taxes of $1,503,040. Timpanogos provided the following information relating to its 2021 activities:

Life insurance proceeds as a result of CEOs death	$ 224,000
Revenue from sales (for both book and tax purposes)	2,240,000
Premiums paid on the key-person life insurance policies. The policies have no cash surrender value.	23,520
Qualified charitable contributions	201,600
Cost of goods sold for book and tax purposes	336,000
Interest income on tax-exempt bonds	44,800
Interest paid on loan obtained to purchase tax-exempt bonds	50,400
Rental income payments received and earned in 2021	16,800
Rental income payments received in 2020 but earned in 2021	11,200
Rental income payments received in 2021 but not earned by year-end	33,600
Tax depreciation	61,600
Book Depreciation	28,000
Net capital loss	47,040
Federal income tax expense for books in 2021	347,200

Required:

1. 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.
2. Identify each book-tax difference as either permanent (P) or temporary (T).
3. Complete Schedule M-1 for Timpanogos.
4. Compute Timpanogos Incorporateds tax liability for 2021.