3 Required information The following information apples to the questions displayed below Part 3 Arndt, Inc. reported the following for 2021 and 2022 $ in millions) 2011 $1.046 165 pons Revenues $164 $50 51 Pretax accounting Income (income statement Taxable income tax return) Tax rate 253 a. Expenses each year include $72 million from a two-year casualty insurance policy purchased in 2021 for $144 million The cost tax deductible in 2021 b. Expenses include 52 million insurance premiums each year for life insurance on key executives c. Arndt sells one-year subscriptions to a weekly journal, Subscription sales collected and taxable in 2021 and 2022 were $73 million and $89 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $67 milion (552 million collected in 2020 but not recognized as revenue until 2029) and $73 million, respectively Hint View this as two temporary difference one reversing in 2021, one originating in 2021 d 2021 expenses included a $56 million unrealized loss from reducing Investments (classified as trading securities) to for value. The investments were sold and the loss realized in 2022 e During 2020, accounting income included an estimated loss of 546 million from having accrued a loss contingency The loss was paid in 2021 at which time it is tax deductible At January 1, 2021. Arndt had a deferred tax asset of $4 million and no deferred tax liability prepare the necessary journal entry to record income taxes for 2022. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. (Amounts to deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (I.e., 5,500 should be entered as 5.5).) (s in millions) Current Year 2022 180.0 Future Taxable Amounts [20231 0 Future Deductible Amounts [20231 0 2.0 0 0 Pretax accounting income Permanent difference: Life insurance premiums Temporary differences Casualty insurance (reversing) Subscriptions2021 Subscriptions2022 Unrealized loss (reversing) Taxable income income tax retum) 0 0 0 0 72.0 (58.0) 74.0 (56.0) 214.0 0 OOO (74.0) 0 0 0 25.0% (74.0) 25.0% 25.0% 53.5 Enacted tax rate (%) Tax payable currently Deferred tax liability Deferred tax asset 0 0 >> 0 18.5 Roquired 1 Required 2 > 4. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedu prepare the necessary journal entry to record income taxes for 2022 Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the necessary journal entry to record income taxes for 2022. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (I.. 5,500,000 should be entered as 5.5).) No Transaction General Journal Credit Debit 1 Income tax expenso Deferred tax liability Income tax payable Deferred tax assot Check my work mode : This shows what is correct or incorrect for the work you have completed so 5 6. Suppose that during 2022. tax legislation was passed that will lower Arndt's effective tax rate to 15% beginning in 2023. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary Journal entry to record income taxes for 2022 soro Answer is not complete Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the necessary foumal entry to record income taxes for 2022. (If no entry is required for a transaction/event, select "No Journal entry required in the first account field. Enter your answers in millions rounded to 1 decimal place (... 5,500,000 should be entered as 5.5)) No Transaction General Journal Debit Credit