Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2021, it reported financial statement income after taxes of $1,395,680. Timpanogos provided the following information relating to its 2021 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. Qualified charitable contributlons Cost of goods sold for book and tax purposes Interest incone on tax-exempt bonds Interest peid on loan obtained to purchase tax-exempt bonds Rental income payments recelved and earned in 2021 Rental incone payments received in 2020 but earned in 2021 Rental income paynents received in 2021 but not earned by year-end Tax depreciation Book Depreciation Net capital loss Federal incone tax expense for books in 2021 $ 208,000 2, 0se,000 21,840 187,200 312,000 41,600 46,800 15,600 10,400 31,200 57,200 26,000 43,680 322,400 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 for 2021.
Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2021, it reported financial statement income after taxes of $1,395,680. Timpanogos provided the following information relating to its 2021 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. Qualified charitable contributlons Cost of goods sold for book and tax purposes Interest incone on tax-exempt bonds Interest peid on loan obtained to purchase tax-exempt bonds Rental income payments recelved and earned in 2021 Rental incone payments received in 2020 but earned in 2021 Rental income paynents received in 2021 but not earned by year-end Tax depreciation Book Depreciation Net capital loss Federal incone tax expense for books in 2021 $ 208,000 2, 0se,000 21,840 187,200 312,000 41,600 46,800 15,600 10,400 31,200 57,200 26,000 43,680 322,400 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 for 2021.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Question
Only Answer C and D
![Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2021, it reported financial statement income after taxes
of $1,395,680. Timpanogos provided the following information relating to its 2021 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.
Qualified charitable contributlons
Cost of goods sold for book and tax purposes
Interest incone on tax-exempt bonds
Interest paid on loan obtained to purchase tax-exempt bonds
Rental income payments recelved and earned in 2021
Rental incone payments received in 2020 but earned in 2021
Rental income payments received in 2021 but not earned by year-end
Tax depreciation
Book Depreciation
Net capital loss
Federal income tax expense for books in 2021
$ 208,000
2,0se,000
21,840
187,200
312,000
41,600
46,800
15,600
10,400
31,200
57,200
26,000
43,680
322,400
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 for 2021.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5dba095d-c5c0-4e6c-94ff-9d9928d807c0%2F92449e70-2e77-40b8-832e-9b8293e241b1%2F7oen4f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2021, it reported financial statement income after taxes
of $1,395,680. Timpanogos provided the following information relating to its 2021 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.
Qualified charitable contributlons
Cost of goods sold for book and tax purposes
Interest incone on tax-exempt bonds
Interest paid on loan obtained to purchase tax-exempt bonds
Rental income payments recelved and earned in 2021
Rental incone payments received in 2020 but earned in 2021
Rental income payments received in 2021 but not earned by year-end
Tax depreciation
Book Depreciation
Net capital loss
Federal income tax expense for books in 2021
$ 208,000
2,0se,000
21,840
187,200
312,000
41,600
46,800
15,600
10,400
31,200
57,200
26,000
43,680
322,400
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 for 2021.
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