$ 284,888 2,848,888 21,400 Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2023, it reported financial...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
$ 284,888 2,848,888 21,400 Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2023, it reported financial statement Income after taxes of $1,369,100. Timpanogos provided the following Information relating to its activities for the year. Life insurance proceeds as a result of CEO's death Revenue from sales (for both book and tax purposes) Premiums paid on the key-person life insurance policies. The policies have no cash surrender value. Charitable contributions Cost of of goods sold for book and tax purposes Interest on tax-exempt bonds Interest paid on loan obtained to purchase tax-exempt bonds Rental income payments received and earned in 2823 Rental in payments received in 2822 but earned in 2823 Rental income payments received in 2823 but not earned by year-end Tax depreciation Book Depreciation Net capital loss Federal income tax expense for books Required: a. 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. b. Identify each book-tax difference as either permanent (P) or temporary (T). c. Complete Schedule M-1 for Timpanogos. d. Compute Timpanogos Incorporated's tax liability. Complete this question by entering your answers in the tabs below. Required A and B Required C Required D 183,680 306,000 48,888 45.988 45,988 15,488 18,288 30,600 56,000 25,400 42,800 316,280 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. Revenue from sales Description Cost of goods sold Gross profit Other income: Life insurance proceeds from CEO's death Interest income on tax-exempt bonds Net capital loss Rental Income Book Income Book-tax Permanent (P) or (Debit Credit adjustments Temporary (T) $ 2,040,000 (306,000 $ 1,734,000l 204,000 40,800 (42,800) 25,600 $ 1,961,600 (Debit) Book-tax adjustments Credit Taxable Permanent (P) or Temporary (T) Income (Debit Credit $ $ Gross income Expenses Interest paid to obtain tax-exempt bonds 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 (after 10%) Book or Taxable income (45,900) (21,400) (316,200) (383,500) $ 1,440,000 42,800 (42,800) (183,600) $ 1,299,200 $ $ 0 $ 284,888 2,848,888 21,400 Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2023, it reported financial statement Income after taxes of $1,369,100. Timpanogos provided the following Information relating to its activities for the year. Life insurance proceeds as a result of CEO's death Revenue from sales (for both book and tax purposes) Premiums paid on the key-person life insurance policies. The policies have no cash surrender value. Charitable contributions Cost of of goods sold for book and tax purposes Interest on tax-exempt bonds Interest paid on loan obtained to purchase tax-exempt bonds Rental income payments received and earned in 2823 Rental in payments received in 2822 but earned in 2823 Rental income payments received in 2823 but not earned by year-end Tax depreciation Book Depreciation Net capital loss Federal income tax expense for books Required: a. 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. b. Identify each book-tax difference as either permanent (P) or temporary (T). c. Complete Schedule M-1 for Timpanogos. d. Compute Timpanogos Incorporated's tax liability. Complete this question by entering your answers in the tabs below. Required A and B Required C Required D 183,680 306,000 48,888 45.988 45,988 15,488 18,288 30,600 56,000 25,400 42,800 316,280 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. Revenue from sales Description Cost of goods sold Gross profit Other income: Life insurance proceeds from CEO's death Interest income on tax-exempt bonds Net capital loss Rental Income Book Income Book-tax Permanent (P) or (Debit Credit adjustments Temporary (T) $ 2,040,000 (306,000 $ 1,734,000l 204,000 40,800 (42,800) 25,600 $ 1,961,600 (Debit) Book-tax adjustments Credit Taxable Permanent (P) or Temporary (T) Income (Debit Credit $ $ Gross income Expenses Interest paid to obtain tax-exempt bonds 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 (after 10%) Book or Taxable income (45,900) (21,400) (316,200) (383,500) $ 1,440,000 42,800 (42,800) (183,600) $ 1,299,200 $ $ 0
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Prepare a speech that presents your campaign and will help gain the attention of your audience by doing the following: Write a speech that, when delivered, is between 5-7 minutes. The speech should...
-
A skateboard ramp is built with an incline angle of 5 pie / 1 2 . If the base of the ramp is 1 m in length, determine the exact height of the ramp.
-
) A local firm employs 20 full-time professionals. The budgetedannual compensation per employee is $81,000. The budgeted averagechargeable time is 500 hours per client annually. All professionallab 2...
-
Show how you could prepare each of the following carboxylic acids from diethyl malonate and any necessary organic or inorganic reagents: (a) Nonanoic acid (b) 4-Methylhexanoic acid (c)...
-
The static getAvailableCurrencies method of the java.util.Currency class yields a set of Currency objects. Turn it into a stream and transform it into a stream of the currency display names. Print...
-
After having classified the transactions of Shahrukh Khanna and Sons, now, summarize them in a Trial Balance.
-
A conceived a secret process for the continuous freeze-drying of foodstuffs and related products and constructed a small pilot plant that practiced the process. A, however, lacked the financing...
-
Study Problem 9-8 (algo) Table A below shows abbreviated balance sheets for the central bank in the country of Beckland and B shows tables for its whole" commercial banking system. The target reserve...
-
Let X, X2, X, be a random sample from a discrete uniform population with probability mass function 9-1 x=1,2,...,0, where 8 is an unknown parameter which is a positive integer. (a) Find an...
-
A continuous-time signal x(t) is sampled at 1000 samples/second with negligible aliasing. You use its samples to compute its spectrogram using the FFT at various time shifts. You then obtain the...
-
The COVID - 1 9 pandemic was an example of a negative demand shock and a positive supply shock? Explain
-
Assume we are in a Black-Scholes world where on day t = 0 a stock is trading at So = $35 per share. The stock price volatility is = 25% and it pays a continuous dividend yield D=2%. Suppose the...
-
Rocky Mountain Tire Center sells 7,000 go-cart tires per year. The ordering cost for each order is 540, and the holding cost is 50% of the purchase price of the tires per year. The purchase price is...
-
A ray of light strikes a thick sheet of glass (n = 1.5) at an angle of 25 with the normal. Find the angle of the refracted ray within the glass with respect to the normal.
-
If fixed costs are $750,000 and variable costs are 60% of sales, what is the break-even point in sales dollars? a. $1,250,000 b. $450,000 c. $1,875,000 d. $300,000
-
Consider the reaction of acetic acid in water CH 3 CO 2 H(aq) + H 2 O(l) CH3CO 22 (aq) + H 3 O + (aq) where Ka 5 1.8 3 1025. a. Which two bases are competing for the proton? b. Which is the stronger...
-
Consider the two velocity-versus-time graphs shown in Figure P4.4. Are the motions represented by these curves best described as similar or as different? Is the effect of friction on the motion...
-
The velocity-versus-time graph in Figure P4.3 shows the motion of two different objects sliding across a horizontal surface. Could the change in the \(x\) component of velocity with time be...
-
In a collision experiment, the ratio of the velocity change between two carts of equal inertia is found to equal 1. What happens to this ratio if the experiment is repeated in the following...
Study smarter with the SolutionInn App