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Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2021, it reported financial statement income after taxes of $1,449,360. Timpanogos provided the following information relating to its 2021 activities: Life insurance proceeds as a result of CEOs death $ 216,000 Revenue from sales (for both book and tax purposes) 2,160,000 Premiums paid on the key-person life insurance policies. The policies have no cash surrender value. 22,680 Qualified charitable contributions 194,400 Cost of goods sold for book and tax purposes 324,000 Interest income on tax-exempt bonds 43,200 Interest paid on loan obtained to purchase tax-exempt bonds 48,600 Rental income payments received and earned in 2021 16,200 Rental income payments received in 2020 but earned in 2021 10,800 Rental income payments received in 2021 but not earned by year-end 32,400 Tax depreciation 59,400 Book Depreciation 27,000 Net capital loss 45,360 Federal income tax expense for books in 2021 334,800 Required: 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). Complete Schedule M-1 for Timpanogos. Compute Timpanogos Incorporateds tax liability for 2021.

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