Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues 2024 $ 948...
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Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues 2024 $ 948 Expenses 804 Pretax accounting income (income statement) Taxable income (tax return) $ 144 $ 96 2025 $ 1,040 860 $ 180 $ 214 Tax rate: 25% a. Expenses each year include $66 million from a two-year casualty insurance policy purchased in 2024 for $132 million. The cost is tax deductible in 2024. b. Expenses include $2 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 2024 and 2025 were $67 million and $83 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $61 million ($44 million collected in 2023 but not recognized as revenue until 2024) and $67 million, respectively. Hint View this as two temporary differences-one reversing in 2024; one originating in 2024. Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues 2024 $ 948 Expenses 804 Pretax accounting income (income statement) Taxable income (tax return) $ 144 $ 96 2025 $ 1,040 860 $ 180 $ 214 Tax rate: 25% a. Expenses each year include $66 million from a two-year casualty insurance policy purchased in 2024 for $132 million. The cost is tax deductible in 2024. b. Expenses include $2 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 2024 and 2025 were $67 million and $83 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $61 million ($44 million collected in 2023 but not recognized as revenue until 2024) and $67 million, respectively. Hint View this as two temporary differences-one reversing in 2024; one originating in 2024.
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