70.2K

Verified Solution

Link Copied!

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 $\backslash (($P$)\backslash )$ or temporary $\backslash (($T$)\backslash ).$

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 D

Compute Timpanogos Incorporated's tax liability.

Tax liability Assessment Tool iFrame

Required $\backslash ($ A $\backslash )$ and $\backslash ($ B $\backslash )$

Required $\backslash ($ C $\backslash )$

Required D

Complete Schedule M$-1$ for Timpanogos.

Note: Enter all values as positive numbers.

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|\}$

$\backslash$hline Schedule M$-1$: Reconciliation of Income $($Loss$)$ per Books With Income per Return & $\backslash \backslash$

$\backslash$hline $1.$ Net income $($loss$)$ per books & $\backslash \backslash$

$\backslash$hline $2.$ Federal income tax per books & $\backslash \backslash$

$\backslash$hline $3.$ Excess of capital losses over capital gains & $\backslash \backslash$

$\backslash$hline $4.$ Income subject to tax not recorded on books this year $($itemize$)$: & $\backslash \backslash$

$\backslash$hline Rental income & $\backslash \backslash$

$\backslash$hline $5.$ Expenses recorded on books this year not deducted on this return $($itemize$)$: & $\backslash \backslash$

$\backslash$hline a$.$ Depreciation & $\backslash \backslash$

$\backslash$hline b$.$ Charitable contributions & $\backslash \backslash$

$\backslash$hline c$.$ Travel and entertainment & $\backslash \backslash$

$\backslash$hline Interest paid to obtain tax$-$exempt bonds & $\backslash \backslash$

$\backslash$hline Life insurance premiums & $\backslash \backslash$

$\backslash$hline $6.$ Total & $\backslash \backslash$

$\backslash$hline $7.$ Income recorded on books this year not included on this return $($itemize$)$: & $\backslash \backslash$

$\backslash$hline Tax$-$exempt interest & $\backslash \backslash$

$\backslash$hline Life insurance proceeds from CEO's death & $\backslash \backslash$

$\backslash$hline $8.$ Deductions on this return not charged against book income this year $($itemize$)$: & $\backslash \backslash$

$\backslash$hline a$.$ Depreciation & $\backslash \backslash$

$\backslash$hline b$.$ Charitable contributions & $\backslash \backslash$

$\backslash$hline $9.$ Total & P $\backslash \backslash$

$\backslash$hline $10.$ Income & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$ 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 ince 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.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline Description & Book Income $($Debit$)$ Credit & Book$-$tax adjustments $($Debit$)$ & Permanent $($P$)$ or Temporary $(\backslash (\backslash$mathbf$\{$T$\}\backslash ))$ & Book$-$tax adjustments Credit & Permanent $\backslash ((\backslash$mathrm$\{$P$\})\backslash )$ or Temporary $($ T $)$ & Taxable Income $($Debit$)$ Credit $\backslash \backslash$

$\backslash$hline Revenue from sales & & & & & & $\backslash \backslash$

$\backslash$hline Cost of goods sold & & & & & & $\backslash \backslash$

$\backslash$hline Gross profit & & & & & & $\backslash \backslash$

$\backslash$hline Other income: & & & & & & $\backslash \backslash$

$\backslash$hline Life insurance proceeds from CEO's death & & & & & & $\backslash \backslash$

$\backslash$hline Interest income on tax$-$exempt bonds & & & & & & $\backslash \backslash$

$\backslash$hline Net capital loss & & & & & & $\backslash \backslash$

$\backslash$hline Rental income & & & & & & $\backslash \backslash$

$\backslash$hline Gross income & & & & & & $\backslash \backslash$

$\backslash$hline Expenses: & & & & & & $\backslash \backslash$

$\backslash$hline Interest paid to obtain tax$-$exempt bonds & & & & & & $\backslash \backslash$

$\backslash$hline Depreciation & & & & & & $\backslash \backslash$

$\backslash$hline Life insurance premiums & & & & & & $\backslash \backslash$

$\backslash$hline Federal income tax expense & & & & & & $\backslash \backslash$

$\backslash$hline Total expenses before charitable contribution, NOL, and DRD & & & & & & $\backslash \backslash$

$\backslash$hline Income before charitable contribution, NOL, and DRD & & & & & & $\backslash \backslash$

$\backslash$hline NOL carryover from prior year & & & & & & $\backslash \backslash$

$\backslash$hline Taxable income for charitable contribution limitation purposes & & & & & & $\backslash \backslash$

$\backslash$hline Charitable contributions $($after $10\backslash \%$ limit$)$ & & & & & & $\backslash \backslash$

$\backslash$hline Book or Taxable income & & & & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$ 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 $\backslash (($P$)\backslash )$ or temporary $\backslash (($T$)\backslash ).$

Assessment Tool iFrame

c$.$ Complete Scneauie IVI$-$ITOr IImpanogos.

d$.$ Compute Timpanogos Incorporated's tax liability.

Complete this question by entering your answers in the tabs below. Comprehensive Problem $5-64($LO $5-1,$ LO $5-2,$ LO $5-3)($Algo$)$

Timpanogos Incorporated is an accrual$-$method, calendar$-$year corporation. For $2024,$ it reported financial statement income after taxes of $\backslash (\backslash$$ $1,653,650\backslash ).$ Timpanogos provided the following information relating to its activities for the year:

Required: $\backslash (\backslash$square $\backslash )$

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.

Show all imagesShow all images

Answer & Explanation Solved by verified expert

See Answer