Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2021, it reported financial statement income after taxes of $1,409,100. Timpanogos provided the following information relating to its 2021 activities:

Life insurance proceeds as a result of CEOs death	$ 210,000
Revenue from sales (for both book and tax purposes)	2,100,000
Premiums paid on the key-person life insurance policies. The policies have no cash surrender value.	22,050
Qualified charitable contributions	189,000
Cost of goods sold for book and tax purposes	315,000
Interest income on tax-exempt bonds	42,000
Interest paid on loan obtained to purchase tax-exempt bonds	47,250
Rental income payments received and earned in 2021	15,750
Rental income payments received in 2020 but earned in 2021	10,500
Rental income payments received in 2021 but not earned by year-end	31,500
Tax depreciation	57,750
Book Depreciation	26,250
Net capital loss	44,100
Federal income tax expense for books in 2021	325,500

Required:

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. Identify each book-tax difference as either permanent (P) or temporary (T). (Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)

Description	Book Income (Dr) Cr	Book-tax adjustments (Dr)	Permanent (P) or Temporary (T)	Book-tax adjustments Cr	Permanent (P) or Temporary (T)	Taxable Income (Dr) Cr
Revenue from sales
Cost of goods sold
Gross profit
Other income:
Life insurance proceeds from CEOs death
Interest income on tax-exempt bonds
Rental income
Gross income
Expenses:
Interest paid to obtain tax-exempt bonds
Net capital loss
Depreciation
Life insurance premiums
Federal income tax expense
Total expenses before charitable contribution, NOL, and DRD
Income before charitable contribution, NOL, and DRD
NOL carryover from prior year
Taxable income for charitable contribution limitation purposes
Charitable contributions
Book/Taxable income

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
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	0
7. Income recorded on books this year not included on this return (itemize):
Tax-exempt interest
Life insurance proceeds from CEOs death
8. Deductions on this return not charged against book income this year (itemize):
a. Depreciation
b. Charitable contributions
Section 263A costs
9. Total	$0
10. Income

Compute Timpanogos Incorporateds tax liability for 2021.

Tax liability