Case Development began operations in December 2021. When property is sold on an installment basis, Case recognizes installment income for financial reporting purposes in the year of the sale. For tax purposes, installment income is reported by the installment method. 2021 installment income was $834,000 and will be collected over the next three years. Scheduled collections and enacted tax rates for 2022-2024 are as follows: 2022 2023 2024 $ 270,000 201 312,000 25 252,000 25 Case also had product warranty costs of $301,000 expensed for financial reporting purposes in 2021. For tax purposes only the $72,000 of warranty costs actually paid in 2021 was deducted. The remaining $229,000 will be deducted for tax purposes when paid over the next three years as follows: 2022 $85,000 2023 76,000 2024 68,000 Pretax accounting income for 2021 was $983,000, which includes interest revenue of $23,000 from municipal bonds. The enacted tax rate for 2021 is 20% Required: 1. Assuming no differences between accounting income and taxable income other than those described above, prepare the appropriate journal entry to record Case's 2021 income taxes. 2. What is Case's 2021 net income? Assuming no differences between accounting income and tbxable income other than those described above, prepare the appropriate journal entry to record Case's 2021 income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) No Event General Journal Credit 1 1 Income tax expense Deferred tax asset Income tax payable Deferred tax liability Debit 340,000 53,000 198,000 195,000 Required 1 Required 2 Required information [The following information applies to the questions displayed below.) Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): Revenues Expenses Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 258 2021 $ 930 786 $ 144 $ 114 2022 $1,022 842 $ 180 $ 214 a. Expenses each year include $48 million from a two-year casualty insurance policy purchased in 2021 for $96 million. The cost is tax deductible in 2021. 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 2021 and 2022 were $49 million and $65 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $43 million ($28 million collected in 2020 but not recognized as revenue until 2021) and $49 million, respectively. Hint View this as two temporary differences-one reversing in 2021: one originating in 2021. d. 2021 expenses included a $32 million unrealized loss from reducing investments (classified as trading securities) to fair value. The investments were sold and the loss realized in 2022. e. During 2020, accounting income included an estimated loss of $22 million from having accrued a loss contingency. The loss was paid in 2021, at which time it is tax deductible. f. At January 1, 2021, Arndt had a deferred tax asset of $4 million and no deferred tax liability Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) ($ in millions) Current Year 2021 Future Taxable Amounts [2022] Future Deductible Amounts (2022] $ 144.0 2.0 Pretax accounting income Permanent difference: Life insurance premiums Temporary differences: Casualty insurance expense Subscriptions-2020 Subscriptions--2021 Unrealized loss Loss contingency Taxable income 48.0 (48.0) (28.0) 32.0 102.0 $ 48.0 $ 0.0 25.0% 25.0% 25.0% Enacted tax rate (%) Tax payable currently Deferred tax liability Deferred tax asset 3. Compute the deferred tax amounts that should be reported on the 2021 balance sheet (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Deferred tax amounts ($ in millions) Classification Net noncurrent deferred tax asset Amount