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a. At December 31, 2018, temporary differences existed between the financial statement carrying amounts and the tax bases of the following: ($ in millions) Future
a. At December 31, 2018, temporary differences existed between the financial statement carrying amounts and the tax bases of the following: ($ in millions) Future Taxable Carrying Tax (Deductible) Amount Basis Amount $130 $95 $ 35 55 0 55 30 0 (30) Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss contingency b. No temporary differences existed at the beginning of 2018. c. Pretax accounting income was $205 million and taxable income was $145 million for the year ended December 31, 2018. The tax rate is 35%. Required: 1. Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2018 2. What is the 2018 net income? Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 G) Required 2 Complete the following table given below to record income taxes for 2018. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Negative amounts should be entered with a minus sign.) Tax Rate % Tax $ Recorded as: ($ in millions) $ 205.0 Pretax accounting income Permanent differences Income subject to taxation 205.0 X $ 0.0 Temporary Differences Depreciation
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