Arndt, Inc. reported the following for 2011 and 2012 ($ in millions): Revenues 2011 2012 $870 $1,030 Expenses 710 770 Pretax accounting income (income statement) $160 $260 Taxable income (tax return) $176 $262 Tax rate: 30% a. Expenses each year include $21 million from a two-year casualty insurance policy purchased in 2011 for $42 million. The cost is tax-deductible in 2011. b. Expenses include $2 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 2011 and 2012 were $37 million and $39 million, respectively. Subscriptions included in 2011 and 2012 financial reporting revenues were $22 million ($11 million collected in 2010 but not earned until 2011)and $37 million, respectively. Hint: View this as two temporary differencesone reversing in 2011; one originating in 2011. d. 2011 expenses included a $23 million unrealized loss from reducing investments (classified as trading securities) to fair value. The investments were sold in 2012. e. During 2010, accounting income included an estimated loss of $3 million from having accrued a loss contingency. The loss was paid in 2011 at which time it is tax deductible. f. At January 1, 2011, Arndt had a deferred tax asset of $6 million and no deferred tax liability. (1)Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for 2011. (Enter your answers in millions of dollar rounded to 2 decimal places. Amounts to be deducted should be indicated with a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Ending balances (balance currently needed - enter amounts as positive). Omit the "$" & "%" signs in your response.) ($ in millions) Current Year 2011 Future Taxable Future Deductible Amount 2012 Amount 2012 Pretax accounting income Permanent difference: Life insurance premiums Temporary differences: Casualty insurance expense Subscriptions-2010 Subscriptions-2011 Unrealized loss Loss contingency (reversing) Taxable income (income tax return) Enacted tax rate Tax payable currently Deferred tax liability Deferred tax asset Deferred tax liability Deferred tax asset Ending balances (balance currently needed): Less: beginning balances: Changes needed to achieve desired balances