Subject: Timpanogos Inc. is an accrual-method calendar-year corporation. For 2017, it reported financial statement income aftertaxes of $1,452,000. Timpanogos provided the following information relating to its 2017 activities:Life insurance proceeds as a result of CEO's deathRevenue 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 contributionswwww..Lucer.coInterest income on private activity tax-exempt bonds issued in 2014.Interest paid on loan obtained to purchase tax-exempt bondsLUCOLO paid onRental income payments received and earned in 2017Rental income payments received in 2016 but earned in 2017Rental income payments received in 2017 but not earned by year-endMACRS depreciationBook DepreciationAlternative minimum tax depreciationNet capital loss.Federal income tax expense for books in 2017Timpanogos did not qualify for the domestic production activities deduction. Corporate tax schedule (Leave no answerblank. Enter zero if applicable.)Required:a. Reconcile book income to taxable income for Timpanogos Inc. Be sure to start with book income and identify all of the adjustmentsnecessary to arrive at taxable income.d. Compute Timpanogos Inc.'s regular tax liability.e. Determine Timpanogos's alternative minimum tax, if any.200,0002,000,00021,000180,00040 00040,000in 20045,0001000015,00020700010,0002030,00055,00025,00050,00042,000500,000

Regular Tax Liability: Regular Tax Liability refers to the amount of tax owed by an individual or a…

Timpanogos Inc. is an accrual-method calendar-year corporation. For 2017, it reported financial statement income after taxes of $1,452,000. Timpanogos provided the following information relating to its 2017 activities: 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 Interest income on private activity tax-exempt bonds issued in 2014. paid on loan obtained to purchase tax-exempt bonds payments received and earned in 2017. Tehoren Interest Rental income Rental Rental income income payments received in 2016 but earned in 2017 payments received in 2017 but not earned by year-end Rental MACRS depreciation Book Depreciation Alternative minimum tax depreciation. Net capital loss. Federal income tax expense for books in 2017 $200,000 2,000,000 21,000 180,000 40,000 45.000 45,000 15.000 15,000 10.000 10,000 30.000 30,000 55,000 55.000 25,000 50,000 42,000 500,000

Timpanogos Inc. is an accrual-method calendar-year corporation. For 2017, it reported financial statement income after taxes of $1,452,000. Timpanogos provided the following information relating to its 2017 activities: 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 Interest income on private activity tax-exempt bonds issued in 2014. paid on loan obtained to purchase tax-exempt bonds payments received and earned in 2017. Tehoren Interest Rental income Rental Rental income income payments received in 2016 but earned in 2017 payments received in 2017 but not earned by year-end Rental MACRS depreciation Book Depreciation Alternative minimum tax depreciation. Net capital loss. Federal income tax expense for books in 2017 $200,000 2,000,000 21,000 180,000 40,000 45.000 45,000 15.000 15,000 10.000 10,000 30.000 30,000 55,000 55.000 25,000 50,000 42,000 500,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Subject:

Timpanogos Inc. is an accrual-method calendar-year corporation. For 2017, it reported financial statement income after
taxes of $1,452,000. Timpanogos provided the following information relating to its 2017 activities:
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
wwww..
Lucer.co
Interest income on private activity tax-exempt bonds issued in 2014.
Interest paid on loan obtained to purchase tax-exempt bonds
LUCOLO paid on
Rental income payments received and earned in 2017
Rental income payments received in 2016 but earned in 2017
Rental income payments received in 2017 but not earned by year-end
MACRS depreciation
Book Depreciation
Alternative minimum tax depreciation
Net capital loss.
Federal income tax expense for books in 2017
Timpanogos did not qualify for the domestic production activities deduction. Corporate tax schedule (Leave no answer
blank. Enter zero if applicable.)
Required:
a. Reconcile book income to taxable income for Timpanogos Inc. Be sure to start with book income and identify all of the adjustments
necessary to arrive at taxable income.
d. Compute Timpanogos Inc.'s regular tax liability.
e. Determine Timpanogos's alternative minimum tax, if any.
200,000
2,000,000
21,000
180,000
40 000
40,000
in 200
45,000
10000
15,000
207000
10,000
20
30,000
55,000
25,000
50,000
42,000
500,000

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