Comprehensive Problem LO LO LO Algo
Timpanogos Incorporated is an accrualmethod, calendaryear corporation. For it reportedcifianciahstatement inicomre after
taxes of $ Timpanogos provided the following information relating to its activities for theyear:
Life insurance proceeds as a result of CEO's death
Revenue from sales for both book and tax purposes
Premiums paid on the keyperson life insurance policies. The policies have no cash surrender ivalue.
Charitable contributions
Cost of goods sold for book and tax purposes
Interest income on taxexempt bonds
Interest paid on loan obtained to purchase taxexempt bonds
Rental income payments received and earned in
Rental income payments received in but earned in
Rental income payments received in but not earned by yearend
Tax depreciation
Book Depreciation
Net capital loss
Federal income tax expense for books
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.
