AMC Co. reported the following for 2018 and 2019 ($ in millions):

	2018				2019
Revenues	$	989			$	1,049
Expenses		792				832
Pretax accounting income (income statement)	$	197			$	217
Taxable income (tax return)	$	190			$	240
Tax rate: 40%

1. Expenses each year include $30 million from a two-year casualty insurance policy purchased in 2018 for $60 million. The cost is tax deductible in 2018.
2. Expenses include $3 million insurance premiums each year for life insurance on key executives.
3. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2018 and 2019 were $30 million and $58 million, respectively. Subscriptions included in 2018 and 2019 financial reporting revenues were $32 million ($14 million collected in 2017 but not recognized as revenue until 2018) and $40 million, respectively. Hint: View this as two temporary differencesone reversing in 2018; one originating in 2018.
4. 2018 expenses included a $28 million unrealized loss from reducing investments (classified as trading securities) to fair value. The investments were sold in 2019.
5. During 2017, accounting income included an estimated loss of $6 million from having accrued a loss contingency. The loss was paid in 2018 at which time it is tax deductible.
6. At January 1, 2018, Arndt had a deferred tax asset of $8 million and no deferred tax liability.

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 2019.

prepare the necessary journal entry to record income taxes for 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Prepare a schedule that reconciles the difference between pretax accounting income and taxab deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,00 Current Year 2019 217 Future Taxable Amounts [2020] Future Deductible Amounts [2020) ($ in millions) Pretax accounting income Permanent difference: Life insurance premiums Temporary differences: Casualty insurance (reversing) Subscriptions-2018 Subscriptions2019 Unrealized loss (reversing) Taxable income (income tax return) (30) 40 28 283 22 40% 40% 40% 80 Enacted tax rate (%) Tax payable currently Deferred tax liability Deferred tax asset 12 20 Ending balances (balances currently needed) Less: Beginning balances Changes needed to achieve desired balances Deferred tax liability Deferred tax assets 12$ or 12 $ 6) 14