******* Using USA Tax Laws - I only need help with the answers that are marked in red, please. Thank You :-) *********

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Required: a. Reconcile book income to taxable income for Timpanogos Inc. Be sure to start with book income and identify all of the adjustments necessary to arrive at taxable income. b. Identify each book-tax difference as either permanent (P) or temporary (T). c. Complete Schedule M-1 for Timpanogos. d. Compute Timpanogos Inc.'s tax liability for 2018. Answer is not complete. Complete this question by entering your answers in the tabs below. Req A and B Reqc Reg D Reconcile book income to taxable income for Timpanogos Inc. Be sure to start with book income and identify all of the adjustments necessary to arrive at ta Identify each book-tax difference as either permanent (P) or temporary (T). (Negative amounts should be indicated by a minus sign.) Complete this question by entering your answers in the tabs below. Req A and B Reqc Reg D Reconcile book income to taxable income for Timpanogos Inc. Be sure to start with book income and identify all of the adjustments necessary to arrive at ta Identify each book-tax difference as either permanent (P) or temporary (T). (Negative amounts should be indicated by a minus sign.) Description Taxable Income Book-tax adjustments Cr (Dr) Book Income (Dr) C $2,000,000 (300,000) $1,700,000 $ (Dr) Cr 2,000,000 (300,000) 1,700,000 $ Revenue from sales Cost of goods sold Gross profit Other income: Life insurance proceeds from CEO's death Interest income on tax-exempt bonds Rental income Gross income 200,000 40,000 25,000 (200,000) (40,000) (10,000) T P P 30,000T $ 1,965,000 $ 1,700,000 (200,000) (40,000) (10,000) T P P 200,000 40,000 25,000 $ 1,965,000 0 3 0,000T $ 1,700,000 45,000P 42,000 (30,000) (55,000) Life insurance proceeds from CEO's 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 (45,000) * (42,000) (25,000) (21,000) (500,000) (633,000) $1,332,000 21,000P 500,000P (55,000) 1,890,000 $ O $ 12,000 XT (180,000) $1,152,000 1,890,000 (168,000) 1,722,000 (280,000) 650,000 $ NELUI a. Reconcile book income to taxable income for Timpanogos Inc. Be sure to start with book income and identify all of the adjustments necessary to arrive at taxable income. b. Identify each book-tax difference as either permanent (P) or temporary (T). c. Complete Schedule M-1 for Timpanogos. d. Compute Timpanogos Inc.'s tax liability for 2018. Answer is not complete. Complete this question by entering your answers in the tabs below. Req A and B Reqc Reg D 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 Excess of capital losses over capital gains 4. Income subject to tax not recorded on books this year (itemize): Rental income $ 1,152,000 500,000 42,000 3. 20,000 20,000 > 12,000 X 0 45,000 21,000 1,792,000 Income subject to tax not recorded on books this year (itemize): Rental income 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 Total Income recorded on books this year not included on this return (itemize): Tax-exempt interest Life insurance proceeds from CEO's death Rental income Deductions on this return not charged against book income this year (itemize): a. Depreciation b. Charitable contributions Sec. 263A costs Total Income 40,000 200,000 30,000 0 10,000 X $ 280,000 $ 1,512,000 10. Required: a. Reconcile book income to taxable income for Timpanogos Inc. Be sure to start with book income and identify all of the adjustments necessary to arrive at taxable income. b. Identify each book-tax difference as either permanent (P) or temporary (T). c. Complete Schedule M-1 for Timpanogos. d. Compute Timpanogos Inc.'s tax liability for 2018. Answer is not complete. Complete this question by entering your answers in the tabs below. Req A and B Reqc Reg D Reconcile book income to taxable income for Timpanogos Inc. Be sure to start with book income and identify all of the adjustments necessary to arrive at ta Identify each book-tax difference as either permanent (P) or temporary (T). (Negative amounts should be indicated by a minus sign.) Complete this question by entering your answers in the tabs below. Req A and B Reqc Reg D Reconcile book income to taxable income for Timpanogos Inc. Be sure to start with book income and identify all of the adjustments necessary to arrive at ta Identify each book-tax difference as either permanent (P) or temporary (T). (Negative amounts should be indicated by a minus sign.) Description Taxable Income Book-tax adjustments Cr (Dr) Book Income (Dr) C $2,000,000 (300,000) $1,700,000 $ (Dr) Cr 2,000,000 (300,000) 1,700,000 $ Revenue from sales Cost of goods sold Gross profit Other income: Life insurance proceeds from CEO's death Interest income on tax-exempt bonds Rental income Gross income 200,000 40,000 25,000 (200,000) (40,000) (10,000) T P P 30,000T $ 1,965,000 $ 1,700,000 (200,000) (40,000) (10,000) T P P 200,000 40,000 25,000 $ 1,965,000 0 3 0,000T $ 1,700,000 45,000P 42,000 (30,000) (55,000) Life insurance proceeds from CEO's 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 (45,000) * (42,000) (25,000) (21,000) (500,000) (633,000) $1,332,000 21,000P 500,000P (55,000) 1,890,000 $ O $ 12,000 XT (180,000) $1,152,000 1,890,000 (168,000) 1,722,000 (280,000) 650,000 $ NELUI a. Reconcile book income to taxable income for Timpanogos Inc. Be sure to start with book income and identify all of the adjustments necessary to arrive at taxable income. b. Identify each book-tax difference as either permanent (P) or temporary (T). c. Complete Schedule M-1 for Timpanogos. d. Compute Timpanogos Inc.'s tax liability for 2018. Answer is not complete. Complete this question by entering your answers in the tabs below. Req A and B Reqc Reg D 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 Excess of capital losses over capital gains 4. Income subject to tax not recorded on books this year (itemize): Rental income $ 1,152,000 500,000 42,000 3. 20,000 20,000 > 12,000 X 0 45,000 21,000 1,792,000 Income subject to tax not recorded on books this year (itemize): Rental income 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 Total Income recorded on books this year not included on this return (itemize): Tax-exempt interest Life insurance proceeds from CEO's death Rental income Deductions on this return not charged against book income this year (itemize): a. Depreciation b. Charitable contributions Sec. 263A costs Total Income 40,000 200,000 30,000 0 10,000 X $ 280,000 $ 1,512,000 10