Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2023, it reported financial statement income after taxes of $1,382,650. Timpanogos provided the following information relating to its activities for the year:

Life insurance proceeds as a result of CEO's death	206,000
Revenue from sales (for both book and tax purposes)	2,060,000
Premiums paid on the key-person life insurance policies. The policies have no cash surrender value.	21,600
Charitable contributions	185,400
Cost of goods sold for book and tax purposes	309,000
Interest income on tax-exempt bonds	41,200
Interest paid on loan obtained to purchase tax-exempt bonds	46,350
Rental income payments received and earned in 2023	15,600
Rental income payments received in 2022 but earned in 2023	10,300
Rental income payments received in 2023 but not earned by year-end	30,900
Tax depreciation	56,500
Book Depreciation	25,600
Net capital loss	43,200
Federal income tax expense for books	319,300

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.

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). Note: Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Complete Schedule M-1 for Timpanogos. Complete this question by entering your answers in the tabs below. Compute Timpanogos Incorporated's tax liability