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Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): 2024 2025 Revenues $ 926 $ 1,018 Expenses 782 838 Pretax accounting income
Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): 2024 2025 Revenues $ 926 $ 1,018 Expenses 782 838 Pretax accounting income (income statement) $ 144 $ 180 Taxable income (tax return) $ 118 $ 214 Tax rate: 25% Expenses each year include $44 million from a two-year casualty insurance policy purchased in 2024 for $88 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 $45 million and $61 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $39 million ($22 million collected in 20
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