Arndt, Inc., reported the following for 2018 and 2019 ($ in millions): 2019 $ 989 1,049 832 $ 197 217 $ 190 240 2018 Revenues Expenses 792 Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 40% a. Expenses each year include $30 million from a two-year casualty insurance policy purchased in 2018 for $60 million. The cost Is tax deductlble In 2018. b. 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 2018 and 2019 were $30 million and $58 million, respectvely. Subscriptions Included In 2018 and 2019 flnancial 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 differences-one reversing in 2018; one originating in 2018 d. 2018 expenses Included a $28 million unreallzed loss from reducing Investments (classifled as trading securltles) to falr e. During 2017, accounting income included an estimated loss of $6 million from having accrued a loss contingency. The f. At January 1, 2018, Arndt had a deferred tax asset of $8 million and no deferred tax liability value. The investments were sold in 2019 loss was pald In 2018 at whlch tlme It ls tax deductible 2. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule prepare the necessary journal entry to record income taxes for 2018 Complete this question by entering your answers in the tabs below Required 1Required 2 Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Current Year 2018 Future Taxable Amounts [2019] Future Deductible ($ in millions) Amounts [201 Pretax accounting income Permanent difference Life insurance premiums Temporary differences. Casualty insurance expense Subscriptions- 2017 Subscriptions-2018 Unrealized loss Taxable income Enacted tax rate (%) Tax payable currently Deferred tax liability Deferred tax asset Deferred tax liability Deferred tax asset Ending balances (balances currently needed) Less: Beginning balances Changes needed to achieve desired balances Required 1 Required 2 >