Arndt, Inc., reported the following for 2016 and 2017 ($ in millions):

The following information applies to the questions displayed below.] Arndt, Inc., reported the following for 2016 and 2017 ($ in millions) 2016 $1.063 2017 $1,063 Revenues Expenses $991 796 836 Pretax accounting income (income statement) $195 $190 227 $ 240 Taxable income (tax return) Tax rate: 40% a Expenses each year include $30 million from a two-year casualty insurance policy purchased in 2016 for $60 million. The cost is tax deductible in 2016 Expenses include $3 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 2016 and 2017 were $32 million and $52 million, respectively. Subscriptions included in 2016 and 2017 financial reporting revenues were $34 million ($12 million collected in 2015 but not earned until 2016) and $42 million, respectively. Hint: View this as two temporary differences -one reversing in 2016; one originating in 2016 d. 2016 expenses included a $30 million unrealized loss from reducing investments (classified as trading securities) to fair value. The investments were sold in 2017 e During 2015, accounting income included an estimated loss of $6 million from having accrued a loss contingency. The loss was paid in 2016 at which time it is tax deductible At January 1, 2016, Arndt had a deferred tax asset of $9 million and no deferred tax liability