Arndt, Incorporated reported the following for $2024$ and $2025($$ in millions$)$:

$20242025$

Revenues $ $888$ $ $980$

Expenses $760800$

Pretax accounting income $($income statement$)$ $ $128$ $ $180$

Taxable income $($tax return$)$ $ $116$ $ $200$

Tax rate: $25\%$

Expenses each year include $$30$ million from a two$-$year casualty insurance policy purchased in $2024$ for $$60$ million. The cost is tax deductible in $2024.$

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 $2024$ and $2025$ were $$33$ million and $$35$ million, respectively. Subscriptions included in $2024$ and $2025$ financial reporting revenues were $$25$ million $($$$10$ million collected in $2023$ but not recognized as revenue until $2024)$ and $$33$ million, respectively. $($Hint: View this as two temporary differences$$one reversing in $2024$; one originating in $2024.)$

$2024$ expenses included a $$14$ million unrealized loss from reducing investments $($classified as trading securities$)$ to fair value. The investments were sold and the loss realized in $2025.$

During $2023,$ accounting income included an estimated loss of $$6$ million from having accrued a loss contingency. The loss was paid in $2024,$ at which time it is tax deductible.

At January $1,2024,$ Arndt had a deferred tax asset of $$4$ million and no deferred tax liability.

$2.$ 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 $2024.$