$ 218,000 2,180,000 22,800 Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2023, it reported financial statement income after taxes of $1,463,950. 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 goods sold for book and tax purposes Interest income on tax-exempt bonds Interest paid on loan obtained to purchase tax-exempt bonds Rental income payments received and earned in 2023 Rental income payments received in 2022 but earned in 2023 Rental income payments received in 2023 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. 196,200 327,000 43,600 49,050 16,800 10,900 32,700 59,500 26,800 45,600 337,900
$ 218,000 2,180,000 22,800 Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2023, it reported financial statement income after taxes of $1,463,950. Timpanogos provided the following information relating to its activities for the year: Life insurance proceeds as a result of CEO's death Revenue from sales (for both book and tax purposes) Premiums paid on the key-person life insurance policies. The policies have no cash surrender value. Charitable contributions Cost of goods sold for book and tax purposes Interest income on tax-exempt bonds Interest paid on loan obtained to purchase tax-exempt bonds Rental income payments received and earned in 2023 Rental income payments received in 2022 but earned in 2023 Rental income payments received in 2023 but not earned by year-end Tax depreciation Book Depreciation Net capital loss Federal income tax expense for books Required: a. Reconcile book income to taxable income for Timpanogos Incorporated. Be sure to start with book income and identify all of the adjustments necessary to arrive at taxable income. b. Identify each book-tax difference as either permanent (P) or temporary (T). c. Complete Schedule M-1 for Timpanogos. d. Compute Timpanogos Incorporated's tax liability. 196,200 327,000 43,600 49,050 16,800 10,900 32,700 59,500 26,800 45,600 337,900
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 5BCRQ
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Dinesh bhai
Transcribed Image Text:$ 218,000
2,180,000
22,800
196,200
327,000
43,600
49,050
16,800
10,900
32,700
59,500
26,800
45,600
337,900
Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2023, it reported financial statement income after
taxes of $1,463,950. 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 goods sold for book and tax purposes
Interest income on tax-exempt bonds
Interest paid on loan obtained to purchase tax-exempt bonds
Rental income payments received and earned in 2023
Rental income payments received in 2022 but earned in 2023
Rental income payments received in 2023 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
Compute Timpanogos Incorporated's tax liability.
Tax liability
< Required C
Required D >
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