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Arndt, Inc. reported the following for 2 0 2 1 and 2 0 2 2 ( $ in millions ) : 2 0 2 1
Arndt, Inc. reported the following for and $ in millions: Revenues $ $ Expenses Pretax accounting income income statement $ $ Taxable income tax return $ $ Tax rate: Expenses each year include $ million from a twoyear casualty insurance policy purchased in for $ million. The cost is tax deductible in Expenses include $ million insurance premiums each year for life insurance on key executives. Arndt sells oneyear subscriptions to a weekly journal. Subscription sales collected and taxable in and were $ million and $ million, respectively. Subscriptions included in and financial reporting revenues were $ million $ million collected in but not recognized as revenue until and $ million, respectively. Hint: View this as two temporary differencesone reversing in ; one originating in expenses included a $ million unrealized loss from reducing investments classified as trading securities to fair value. The investments were sold and the loss realized in During accounting income included an estimated loss of $ million from having accrued a loss contingency. The loss was paid in at which time it is tax deductible. At January Arndt had a deferred tax asset of $ million and no deferred tax liability Compute the deferred tax amounts that should be reported on the balance shee
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