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Corning-Howell reported taxable income in 2021 of $180 million. At December 31, 2021, the reported amount of some assets and liabilities in the financial statements

Corning-Howell reported taxable income in 2021 of $180 million. At December 31, 2021, 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 $ 68 million $ 72 million
Prepaid insurance 80 million 0
Prepaid advertising 64 million 0
Noncurrent
Investments in equity securities (fair value)* 64 million 0
Buildings and equipment (net) 420 million 340 million
Liabilities
Current
Deferred subscription revenue 72 million 0
Long-term
Liabilitycompensated future absences 654 million 0

*Gains and losses taxable when investments are sold. The total deferred tax asset and deferred tax liability amounts at January 1, 2021, were $186.25 million and $25 million, respectively. The enacted tax rate is 25% each year. Required: 1. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2021. 2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2021. 3. Determine the income tax payable currently for the year ended December 31, 2021. 4. Prepare the journal entry to record income taxes for 2021.

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