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Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2021, it reported financial statement income after taxes of $1,449,360. Timpanogos provided the following information relating to

Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2021, it reported financial statement income after taxes of $1,449,360. Timpanogos provided the following information relating to its 2021 activities:

Life insurance proceeds as a result of CEOs death $ 216,000
Revenue from sales (for both book and tax purposes) 2,160,000
Premiums paid on the key-person life insurance policies. The policies have no cash surrender value. 22,680
Qualified charitable contributions 194,400
Cost of goods sold for book and tax purposes 324,000
Interest income on tax-exempt bonds 43,200
Interest paid on loan obtained to purchase tax-exempt bonds 48,600
Rental income payments received and earned in 2021 16,200
Rental income payments received in 2020 but earned in 2021 10,800
Rental income payments received in 2021 but not earned by year-end 32,400
Tax depreciation 59,400
Book Depreciation 27,000
Net capital loss 45,360
Federal income tax expense for books in 2021

334,800

  1. Complete Schedule M-1 for Timpanogos. #4 and #10
  2. Compute Timpanogos Incorporateds tax liability for 2021.
Schedule M-1: Reconciliation of Income (Loss) per Books With Income per Return
1. Net income (loss) per books $1,449,360
2. Federal income tax per books 334,800
3. Excess of capital losses over capital gains 45,360
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 0
b. Charitable contributions 0
c. Travel and entertainment
Interest paid to obtain tax-exempt bonds 48,600
Life insurance premiums 22,680
6. Total 1,900,801
7. Income recorded on books this year not included on this return (itemize):
Tax-exempt interest $43,200
Life insurance proceeds from CEOs death 216,000
8. Deductions on this return not charged against book income this year (itemize):
a. Depreciation 32,400
b. Charitable contributions
Section 263A costs
9. Total $291,600
10. Income $

Total Tax Liability _________?

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