Complete this question by entering your answers in the tabs below. Required A. and B 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). Note: Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.Timpanogos Incorporated is an accrual - method, calendar-year corporation. For 2022, it reported financial statement income after taxes of $1,626,550. Timpanogos provided the following information relating to its 2022 activities: Life insurance proceeds as a result of CEO's death $ 242,000 Revenue from sales (for both book and tax purposes) 2,420,000 Premiums paid on the key-person life insurance policies. The policies have no cash surrender value. 25, 200 Charitable contributions 217,800 Cost of goods sold for book and tax purposes 363,000 Interest income on tax- exempt bonds 48, 400 Interest paid on loan obtained to purchase tax-exempt bonds 54,450 Rental income payments received and earned in 2022 19,200 Rental income payments received in 2021 but earned in 2022 12,100 Rental income payments received in 2022 but not earned by year-end 36,300 Tax depreciation 65,500 Book Depreciation 29,200 Net capital loss 50, 400 Federal income tax expense for books in 2022 375, 100 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 Incorporated's tax liability. Complete this question by entering your answers in the tabs below. Required A Required C and B 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 income. Identify each 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. Revenue from sales Description Cost of goods sold Gross profit Other income: Life insurance proceeds from CEO's death Interest income on tax-exempt bonds Rental income Gross income Expenses: Interest paid to obtain tax-exempt bonds Net capital loss Depreciation Book Income (Dr) Cr $2,420,000 Book-tax adjustments (Dr) Permanent (P) or Temporary (T) Book-tax adjustments Cr Permanent (P) or Temporary (T) Taxable Income (Dr) Cr $ 2,420,000 (363,000) $2,057,000 242,000 000 48,400✔ 31,300 $2,378,700 (363,000) $ 2,057,000 (242,000) IP P (48,400) P P (12,100) T 38,300 T $ 2,057,000 (54,450) P P (50,400) 0 P T (29,200) T P P P P Life insurance premiums Federal income tax expense (375,100) Total expenses before charitable contribution, NOL, and DRD (509,150) Income before charitable contribution, NOL, and DRD NOL carryover from prior year Taxable income for charitable contribution limitation purposes Charitable contributions (after 10% limit) Book/Taxable income 0 P P $ 0 217,800 x T $ 217,800 S (302,500) $ 38,300 0 < Required A and B Required C >

Complete this question by entering your answers in the tabs below. Required A. and B 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). Note: Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.Timpanogos Incorporated is an accrual - method, calendar-year corporation. For 2022, it reported financial statement income after taxes of $1,626,550. Timpanogos provided the following information relating to its 2022 activities: Life insurance proceeds as a result of CEO's death $ 242,000 Revenue from sales (for both book and tax purposes) 2,420,000 Premiums paid on the key-person life insurance policies. The policies have no cash surrender value. 25, 200 Charitable contributions 217,800 Cost of goods sold for book and tax purposes 363,000 Interest income on tax- exempt bonds 48, 400 Interest paid on loan obtained to purchase tax-exempt bonds 54,450 Rental income payments received and earned in 2022 19,200 Rental income payments received in 2021 but earned in 2022 12,100 Rental income payments received in 2022 but not earned by year-end 36,300 Tax depreciation 65,500 Book Depreciation 29,200 Net capital loss 50, 400 Federal income tax expense for books in 2022 375, 100 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 Incorporated's tax liability. Complete this question by entering your answers in the tabs below. Required A Required C and B 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 income. Identify each 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. Revenue from sales Description Cost of goods sold Gross profit Other income: Life insurance proceeds from CEO's death Interest income on tax-exempt bonds Rental income Gross income Expenses: Interest paid to obtain tax-exempt bonds Net capital loss Depreciation Book Income (Dr) Cr $2,420,000 Book-tax adjustments (Dr) Permanent (P) or Temporary (T) Book-tax adjustments Cr Permanent (P) or Temporary (T) Taxable Income (Dr) Cr $ 2,420,000 (363,000) $2,057,000 242,000 000 48,400✔ 31,300 $2,378,700 (363,000) $ 2,057,000 (242,000) IP P (48,400) P P (12,100) T 38,300 T $ 2,057,000 (54,450) P P (50,400) 0 P T (29,200) T P P P P Life insurance premiums Federal income tax expense (375,100) Total expenses before charitable contribution, NOL, and DRD (509,150) Income before charitable contribution, NOL, and DRD NOL carryover from prior year Taxable income for charitable contribution limitation purposes Charitable contributions (after 10% limit) Book/Taxable income 0 P P $ 0 217,800 x T $ 217,800 S (302,500) $ 38,300 0 < Required A and B Required C >

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter28: Income Taxati On Of Trusts And Estates

Section: Chapter Questions

Problem 10DQ

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