Arnold Industries has pretax accounting income of $62 million for the year ended December 31, 2013. 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, 2013. An $12 million advance rent payment at the inception of the lease is tax-deductible in 2013 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