Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2023, it reported financial statement income after taxes of $1,491,050. Timpanogos provided the following information relating to its activities for the year:

Life insurance proceeds as a result of CEO's death	$ 222,000
Revenue from sales (for both book and tax purposes)	2,220,000
Premiums paid on the key-person life insurance policies. The policies have no cash surrender value.	23,200
Charitable contributions	199,800
Cost of goods sold for book and tax purposes	333,000
Interest income on tax-exempt bonds	44,400
Interest paid on loan obtained to purchase tax-exempt bonds	49,950
Rental income payments received and earned in 2023	17,200
Rental income payments received in 2022 but earned in 2023	11,100
Rental income payments received in 2023 but not earned by year-end	33,300
Tax depreciation	60,500
Book Depreciation	27,200
Net capital loss	46,400
Federal income tax expense for books	344,100

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 Incorporated's tax liability.