Arndt, Inc., reported the following for 2018 and 2019 ($ in millions): 2018 2019 Revenues $ 992 $ 1,046 Expenses 788 828 Pretax accounting income (income statement) $ 204 $ 218 Taxable income (tax return) $ 200 $ 240 Tax rate: 40% 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. Expenses include $2 million insurance premiums each year for life insurance on key executives. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2018 and 2019 were $38 million and $48 million, respectively. Subscriptions included in 2018 and 2019 financial reporting revenues were $30 million ($12 million collected in 2017 but not recognized as revenue until 2018) and $38 million, respectively. Hint: View this as two temporary differencesone reversing in 2018; one originating in 2018. 2018 expenses included a $20 million unrealized loss from reducing investments (classified as trading securities) to fair value. The investments were sold in 2019. During 2017, accounting income included an estimated loss of $4 million from having accrued a loss contingency. The loss was paid in 2018 at which time it is tax deductible. At January 1, 2018, Arndt had a deferred tax asset of $8 million and no deferred tax liability. 6. Suppose that during 2019, tax legislation was passed that will lower Arndts effective tax rate to 30% beginning in 2020. 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. Suppose that during 2019, tax legislation was passed that will lower Arndts effective tax rate to 30% beginning in 2020. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. prepare the necessary journal entry to record income taxes for 2019.