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Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2023, it reported financial statement income after taxes of $1,436,850. Timpanogos provided the following information relating to

Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2023, it reported financial statement income after taxes of $1,436,850. Timpanogos provided the following information relating to its activities for the year:

Life insurance proceeds as a result of CEO's death $ 214,000
Revenue from sales (for both book and tax purposes) 2,140,000
Premiums paid on the key-person life insurance policies. The policies have no cash surrender value. 22,400
Charitable contributions 192,600
Cost of goods sold for book and tax purposes 321,000
Interest income on tax-exempt bonds 42,800
Interest paid on loan obtained to purchase tax-exempt bonds 48,150
Rental income payments received and earned in 2023 16,400
Rental income payments received in 2022 but earned in 2023 10,700
Rental income payments received in 2023 but not earned by year-end 32,100
Tax depreciation 58,500
Book Depreciation 26,400
Net capital loss 44,800
Federal income tax expense for books

331,700

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.

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