Arnold Industries has pretax accounting income of $72 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 $48 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 $100 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 Arnold's income taxes for 2022. Complete this question by entering your answers in the tabs below. Required 1 Required 1 Required 2 Required 3 Required 3 Calculation G) Calculation 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).) (S in millions) Tax Rate % Tax $ Recorded as: Pretax accounting income $ 72.0 Rent costs reversing in: 2022 2023 2024 2025 Total deferred tax amount $ 0.0 Income taxable in current year $ 72.0 x x x x Required 1 Required 3 Required 1 Calculation Required 2 Required 3 Calculation Prepare the appropriate journal entry to record Arnold's income taxes for 2021. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet 1 Record 2021 income taxes. Required 1 Calculation Required 1 Required 2 Required 3 Calculation Required 3 G] Prepare the appropriate journal entry to record Arnold's income taxes for 2022. Pretax accounting income was $100 million for the year ended December 31, 2022. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet
