Corning-Howell reported taxable income in 2018 of $220 million. At December 31, 2018, the reported amount of some assets and liabilities in the financial statements differed from their tax bases as indicated below:

	Carrying Amount				Tax Basis
Assets
Current
Net accounts receivable	$	13	million		$	18	million
Prepaid insurance		42	million			0
Prepaid advertising		6	million			0
Noncurrent
Investments at fair value with changes in OCI*		7	million			0
Buildings and equipment (net)		420	million			350	million
Liabilities
Current
Liabilitysubscriptions received		20	million			0
Long-term
Liabilitypostretirement benefits		620	million			0

*Gains and losses taxable when investments are sold. The total deferred tax asset and deferred tax liability amounts at January 1, 2018, were $260 million and $45 million, respectively. The enacted tax rate is 40% each year. Required: 1. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2018. 2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2018. 3. Determine the income tax payable currently for the year ended December 31, 2018. 4. Prepare the journal entry to record income taxes for 2018.

Required: 1. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2018. 2. Determine the increase (decrease in the deferred tax asset and deferred tax liability accounts at December 31, 2018. 3. Determine the income tax payable currently for the year ended December 31, 2018. 4. Prepare the journal entry to record income taxes for 2018. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2018. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Deferred tax amounts ($ in millions) Classification Amount Deferred tax $ (250) asset Deferred tax $ 50 liability Requirea! 1. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2018. 2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2018. 3. Determine the income tax payable currently for the year ended December 31, 2018. 4. Prepare the journal entry to record income taxes for 2018. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2018. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Negative amounts should be indicated with a minus sign.) ($ in millions) Deferred tax Deferred tax asset liability 5 $ The increase (decrease) at December 31, 2018 9 Requirea! 1. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2018. 2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2018. 3. Determine the income tax payable currently for the year ended December 31, 2018. 4. Prepare the journal entry to record income taxes for 2018. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the income tax payable currently for the year ended December 31, 2018. (Enter your answers in millions (i.e. 10,000,000 should be entered as 10).) Income tax payable million Requirea! 1. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2018. 2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2018. 3. Determine the income tax payable currently for the year ended December 31, 2018. 4. Prepare the journal entry to record income taxes for 2018. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 2 Prepare the journar eru y w record income taxes for 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) No Event General Journal Debit Credit ( Required 3 Required 4 )