Eight independent situations are described below. Each involves future deductible amounts and/or future taxable amounts:

	($ in millions)
	Temporary Differences Reported First on:
	The Income Statement							The Tax Return
	Revenue			Expense				Revenue		Expense
1.				$28
2.	$28
3.								$28
4.										$28
5.	23			28
6.				28				23
7.	23			28						18
8.	23			28				13		18

Required: For each situation, determine taxable income, assuming pretax accounting income is $180 million. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Southern Atlantic Distributors began operations in January 2021 and purchased a delivery truck for $40,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2021, 30% in 2022, and 20% in 2023. Pretax accounting income for 2021 was $520,000, which includes interest revenue of $60,000 from municipal governmental bonds. The enacted tax rate is 25%. Assuming no differences between accounting income and taxable income other than those described above: Required: 1. Complete the following table given below and prepare the journal entry to record income taxes in 2021. 2. What is Southern Atlantics 2021 net income?