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looking for solution 1,3 and 5 The following information applies to the questions displayed below.) Arndt, Inc. reported the following for 2021 and 2022 ($

looking for solution 1,3 and 5 image text in transcribed
The following information applies to the questions displayed below.) Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): Revenues Expensen Pretax accounting Income (income statement) Taxable income tax return) Tax ratet 256 2021 $ 888 760 $ 128 $ 116 2022 $.980 800 $ 180 $ 200 a. Expenses each year include $30 million from a two-year casualty Insurance policy purchased in 2021 for $60 million. The cost is tax deductible in 2021. b. Expenses include $2 million insurance premiums each year for life Insurance on key executives. c. Arndt sells one-year subscriptions to a weekly Journal, Subscription sales collected and taxable in 2021 and 2022 were $33 million and $35 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $25 million ($10 million collected in 2020 but not recognized as revenue until 2021) and $33 million, respectively. Hint View this as two temporary differences--one reversing in 2021; one originating in 2021. d. 2021 expenses included a $14 million unrealized lost from reducing investments (classified as trading securities) to fair value. The investments were sold and the loss realized in 2022. e. During 2020, accounting income included an estimated loss of $6 million from having accrued a loss contingency The loss was paid in 2021, at which time it is tax deductible. f. At January 1, 2021. Arndt had a deferred tax asset of $4 million and no deferred tax liability Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule

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