Arnold Industries has pretax accounting income of $40 million for the year ended December 31, 2018. The tax rate is 40%. 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, 2018. The company made an $20 million advance rent payment at the inception of the lease that will cover the lessee's use of the leased asset for the next four years. Required: 1. Complete the following table given below and prepare the appropriate journal entry to record Arnolds income taxes for 2018. 2. Prepare the appropriate journal entry to record Arnolds income taxes for 2019. Pretax accounting income was $60 million for the year ended December 31, 2019. Assume that the advance rent payment is the only difference between accounting income and taxable income.

Record 2018 income taxes. Record 2019 income taxes