Week 6 - Final Project Saved 3 Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2022, it reported financial statement income after taxes of $1,626,550. Timpanogos provided the following information relating to its 2022 activities: 3.75 Life insurance proceeds as a result of CEO's death point 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 217 , 883 Cost of goods sold for book and tax purposes 363 ,089 Interest income on tax-exempt bonds Interest paid on loan obtained to purchase tax-exempt bonds Book Rental income payments received and earned in 2822 Rental income payments received in 2821 but earned in 2822 19, 208 Rental income payments received in 2822 but not earned by year-end 12 , 188 Tax depreciation Book Depreciation 65 , 5 Net capital loss 58, 408 Federal income tax expense for books in 2822 375, 108 References 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 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. Show less A Description Book Income Book-tax Book-tax (Dr) Cr adjustments Permanent (P) or | adjustments Permanent (P) or Taxable (Dr) Temporary (T) Cr Temporary (T) Income (Dr) Cr Revenue from sales $ 2,420,000 $ 2,420,000 Cost of goods sold (363,000) (383,000) Gross profit $ 2,057,000 $ 2,057,000 Other income: Life insurance proceeds from CEO's death 242,000 Interest income on tax exempt bonds 48400 Rental income 31,300 12.100 36,300 7.100 Gross income $ 2,088,300 $ 2,064,100 Expenses: Interest paid to obtain tax-exempt band: 54.450 Net capital loss 50.400 Depreciation 29.200 36,300 Life insurance premiums 25,200 Federal income tax expense 375,100 375,100 Total expenses before charitable contribution, NOL, and DRD 404,300 Income before charitable contribution, NOL, and DRD $ 1,780,800 NOL carryover from prior year Taxable income for charitable contribution limitation purposes $ 1,780,800 Charitable contributions (after 10% limit) 39.720 T Book Taxable income D $ 12,100 $ 36,300 $ 1,780,800Week 6 - Final Project () 3 Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2022, it reported financial statement income after taxes of $1,626,550. Timpanogos provided the following information relating to its 2022 activities: 3.75 Life insurance proceeds as a result of CEO's death h book and tax purposes) from sales (for both book an $ 242,Bea point 2,428, Gea Premiums paid on the key-person life insurance policies. The policies have no cash surrender value. 25,208 Charitable contributions 217, 808 Cost of goods sold for book and tax purposes 363, 080 Interest income on tax-exempt bonds 48, 489 Book Interest paid on loan obtained to purchase tax-exempt bonds ntal income payments received and earned in 2822 Rental income payments received in 2821 but earned in 2822 19, 208 Rental income payments received in 2822 but not earned by year-end 12, 18 35, 308 Tax depreciation Print 65 , 58 Book Depreciation 29, 208 Net capital loss Federal income tax expense for books in 2822 375, 180 References 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-tox 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 Complete Schedule M-1 for Timpanogos. Note: Enter all values as positive numbers. Schedule M-1: Reconciliation of Income (Loss) per Books With Income per Return 1. Net income (lass) per books $ 2,001,650 2. Federal income tax per books 375,100 3. Excess of capital losses over capital gains 50,400 4. Income subject to tax not recorded on books this year (itemize): Rental income 12,100 5. Expenses recorded on books this year not deducted on this return (itemize); a. Depreciation b. Charitable contributions (39,720) c. Travel and entertainment Interest paid to obtain tax exempt bonds 54,450 Life insurance premium: 25,200 B. Total 2.479,180 7. Income recorded on books this year not included on this return (itemize): Tax-exempt interest (48,400) Life insurance proceeds from CEO's death 242,000) B. Deductions on this return not charged against book income this year (Remize) a. Depreciation 36,300) b. Charitable contributions Section 263A costs 9. Tata $ (326,700) 10. InWeek 6 - Final Project (i 3 Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2022, it reported financial statement income after taxes of $1,626,550. Timpanogos provided the following information relating to its 2022 activities: 3.75 Life insurance proceeds as a result of CEO's death $ 242,808 points Revenue from sales (for both book and tax purposes) 2, 428,Bea Premiums paid on the key-person life insurance policies. The policies have no cash surrender value. 25,280 Charitable contributions 217, 808 Cost of goods sold for book and tax purposes 363 , 880 Interest income on tax-exempt bonds 48, 408 Interest paid on loan obtained to purchase tax-exempt bonds 54, 458 Rental income payments received and earned in 2822 19,208 Rental income payments received in 2821 but earned in 2822 12, 108 Rental income payments received in 2822 but not earned by year-end 36, 380 Tax depreciation 65, 508 Print Book Depreciation 29,208 Net capital loss 58, 480 Federal income tax expense for books in 2022 375, 108 References 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-tex 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 Compute Timpanogos Incorporated's tax liability. Tax liability $ 336,571