Corning-Howell reported taxable income in 2021 of $184 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 $ 76 million $ 72 million 84 million 68 million Assets Current Net accounts receivable Prepaid insurance Prepaid advertising Noncurrent Investments in equity securities (fair value) * Buildings and equipment (net) Liabilities Current Deferred subscription revenue Long-term Liability-compensated future absences 68 million 424 million 344 million 76 million 0 658 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 $188.25 million and $25 million, respectively. The enacted tax rate is 25% each year. Required: 1. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2021. 2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2021. 3. Determine the income tax payable currently for the year ended December 31, 2021. 4. Prepare the journal entry to record income taxes for 2021. Deferred tax amounts ($ in millions) Classification Amount Deferred tax liability Deferred tax asset 3. CLIIIIIII LIIC IICILUJU ILUJEI LIIC UCILIULUN UJJCLUIU UCILIULUN TULILY CLOUTILJ ULUCCIIICIJI, 2U2l. 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. an ended December 31, 2021 ACOUNTIJ UL UL to record income taxes to 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, 2021. (Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). Negative amounts should be indicated with a minus sign.) ($ in millions) Deferred tax liability Deferred tax asset The increase (decrease) at December 31, 2021 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, 2021. (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).) Income tax payable million Required 1 Required 2 Required 3 Required 4 Prepare the journal entry to record income taxes for 2021. (If no entry is required for a transaction/event, select "No journal required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be ente 5.50.) View transaction list Journal entry worksheet Record 2021 income taxes. Note: Enter debits before credits. Transaction Transaction General Journal General Journal Debit Debit Credit Credit
