The following information is from Richards Refrigeration, Inc. It is related to:

1. As of 31 December 2021, the following temporary differences exist between the carrying values of the financial statements and their tax bases:

	(in millions of dollars)
	Book Value			tax base			Future Taxable (Deductible) Amount
Buildings and equipment (after deducting accumulated depreciation)	$	158		$	109			$	49
prepaid insurance		69			0				69
Liability—probability of loss		44			0				(44	)

2. At the beginning of 2021, there were no temporary differences.
3. For the year ended December 31, 2021, pre-tax accounting income was $219 million and taxable income was $145 million. The tax rate is 25%.

Required:
1. Fill in the table given below and prepare the appropriate journal entry to record income taxes for 2021.
2. What is his 2021 net income?

(in millions of dollars)	X	tax rate %	=	tax $	It was recorded as:
Accounting income before tax	$219.0
Permanent differences
taxable income	219.0	X		=	0,00 $
Temporary Differences
		X		=
		X		=
		X		=
taxable income in the current year	$219.0	X		=

Answer rating: 100% (QA)

The information provided by Richards Refrigeration Inc indicates that there are some temporary diffe... View the full answer