Arnold Industries has pretax accounting income of $184 million for the year ended December 31, 2021. The tax rate is 25%. The only difference between accounting income and taxable income relates to an operating lease in which Arnold is the lessee. The inception of the lease was December 28, 2021 An $160 million advance rent payment at the inception of the lease is tax-deductible in 2021 but for financial reporting purposes, represents prepaid rent expense to be recognized equally over the four-year lease term Required: 1. Complete the following table given below and prepare the appropriate journal entry to record Arnold's income taxes for 2021 2. Prepare the appropriate journal entry to record Arnold's income taxes for 2022 Pretax accounting income was $240 million for the year ended December 31, 2022 3. Assume a new tax law is enacted in 2022 that causes the tax rate to change from 25% to 15% beginning in 2023. Complete the following table given below and prepare the appropriate journal entry to record Amold's income taxes for 2022 Complete this question by entering your answers in the tabs below. Required 3 G) Required 3 Calculation Required 1 Calculation Required 2 Required 1 G Complete the following table given below to record Arnold's income taxes for 2021. (Enter your answers in millions rounded to 1 decimal place (i.e., 5.500,000 should be entered as 5.5).) D. Required 1 Calculation Required 1 G) Required 2 Required 3 Calculation Required 3 G) + Complete the following table given below to record Arnold's income taxes for 2021. (Enter your answers in millions roun place (i.e., 5,500,000 should be entered as 5.5).) (s in millions) Tax Rate % Tax S Recorded as: Pretax accounting income $ 184.0 Rent costs reversing in: 2022 2023 2024 2025 Total deferred tax amount Income taxable in current year Required 1 Calculation Required 1 GJ > Journal entry worksheet Record 2021 income taxes. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry Clear entry View general journal Journal entry worksheet *** LIC LOU USUW. Required 1 Calculation Required 1 GJ Required 2 Required 3 Calculation Required 3 G Assume a new tax law is enacted in 2022 that causes the tax rate to change from 25% to 15% beginning in 2023. Complete the following table to record Arnold's income taxes for 2022. (Enter your answers in millions rounded to 1 decimal place (l... 5,500,000 should be entered as 5.5 be deducted should be indicated with a minus sign.) (Sin millions) Tax Rate Tax 5 Recorded as: Cumulative Temporary Difference - Beginning of 2022 Cumulative Temporary Difference - End of 2022 Change in Deferred Tax account Income taxable in current year X x Journal entry worksheet > 2 Record 2022 income taxes. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal n
