Corning-Howell reported taxable income in 2024 of $144 million. At December 31, 2024, 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 $ 32 million $ 36 million Prepaid insurance 44 million 0 Prepaid advertising 28 million 0 Noncurrent Investments in equity securities (fair value)* 28 million 0 Buildings and equipment (net) 384 million 304

Problem 16-9 (Algo) Determine deferred tax assets and liabilities from book-tax differences; financial statement effects [LO16-2, 16-3] Corning-Howell reported taxable income in 2024 of $144 million. At December 31, 2024, the reported amount of some assets and liabilities in the financial statements differed from their tax bases as indicated below: Gains and losses taxable when investments are sold. The total deferred tax asset and deferred tax liability amounts at January 1,2024 , were $168.25 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, 2024. 2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31,2024. 3. Determine the income tax payable currently for the year ended December 31,2024. 4. Prepare the journal entry to record income taxes for 2024