Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2022, it reported financial statement income after taxes of $1,342,000. Timpanogos provided the following information relating to its 2022 activities: Life insurance proceeds as a result of CEO's death Revenue from sales (for both book and tax purposes) $ 200,000 $2,000,000 Premiums paid on the key-person life insurance policies. The policies have no cash surrender value. Charitable contributions $ 21,000 $ 180,000 Cost of goods sold for book and tax purposes $ 300,000 Interest income on tax-exempt bonds $ 40,000 Interest paid on loan obtained to purchase tax-exempt bonds $ 45,000 Rental income payments received and earned in 2022 $ 15,000 Rental income payments received in 2021 but earned in 2022 $ 10,000 Rental income payments received in 2022 but not earned by year-end $ 30,000 Tax depreciation $ 55,000 $ 25,000 Book Depreciation Net capital loss $ 42,000 Federal income tax expense for books in 2022 $ 310,000 D D Which of the following book-to-tax adjustments of Timpanogos Incorporated are temporary differences? Interest income on tax-exempt bonds Life insurance proceeds from CEO's death Net capital loss Rental income Question 2 What is Timpanogos Incorporated's taxable income? 1,510,000 O 1,342,000 O 1,521,000 Question 3 What is the Required Estimated Tax Payment of LNS corporation for the 1st quarter of the year? O $105,000 O $225,000 O $77,500
Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2022, it reported financial statement income after taxes of $1,342,000. Timpanogos provided the following information relating to its 2022 activities: Life insurance proceeds as a result of CEO's death Revenue from sales (for both book and tax purposes) $ 200,000 $2,000,000 Premiums paid on the key-person life insurance policies. The policies have no cash surrender value. Charitable contributions $ 21,000 $ 180,000 Cost of goods sold for book and tax purposes $ 300,000 Interest income on tax-exempt bonds $ 40,000 Interest paid on loan obtained to purchase tax-exempt bonds $ 45,000 Rental income payments received and earned in 2022 $ 15,000 Rental income payments received in 2021 but earned in 2022 $ 10,000 Rental income payments received in 2022 but not earned by year-end $ 30,000 Tax depreciation $ 55,000 $ 25,000 Book Depreciation Net capital loss $ 42,000 Federal income tax expense for books in 2022 $ 310,000 D D Which of the following book-to-tax adjustments of Timpanogos Incorporated are temporary differences? Interest income on tax-exempt bonds Life insurance proceeds from CEO's death Net capital loss Rental income Question 2 What is Timpanogos Incorporated's taxable income? 1,510,000 O 1,342,000 O 1,521,000 Question 3 What is the Required Estimated Tax Payment of LNS corporation for the 1st quarter of the year? O $105,000 O $225,000 O $77,500
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 5BCRQ
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Question
Transcribed Image Text:Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2022, it reported financial statement income
after taxes of $1,342,000. Timpanogos provided the following information relating to its 2022 activities:
Life insurance proceeds as a result of CEO's death
Revenue from sales (for both book and tax purposes)
$ 200,000
$2,000,000
Premiums paid on the key-person life insurance policies. The policies have no cash surrender value.
Charitable contributions
$
21,000
$
180,000
Cost of goods sold for book and tax purposes
$
300,000
Interest income on tax-exempt bonds
$
40,000
Interest paid on loan obtained to purchase tax-exempt bonds
$
45,000
Rental income payments received and earned in 2022
$
15,000
Rental income payments received in 2021 but earned in 2022
$
10,000
Rental income payments received in 2022 but not earned by year-end
$
30,000
Tax depreciation
$
55,000
$
25,000
Book Depreciation
Net capital loss
$
42,000
Federal income tax expense for books in 2022
$
310,000
Transcribed Image Text:D
D
Which of the following book-to-tax adjustments of Timpanogos Incorporated are temporary
differences?
Interest income on tax-exempt bonds
Life insurance proceeds from CEO's death
Net capital loss
Rental income
Question 2
What is Timpanogos Incorporated's taxable income?
1,510,000
O 1,342,000
O 1,521,000
Question 3
What is the Required Estimated Tax Payment of LNS corporation for the 1st quarter of the year?
O $105,000
O $225,000
O $77,500
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