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Please explain the answer step by step and don't handwrite the answer. Thank you. The information that follows pertains to Richards Refrigeration, Inc.: a. At
Please explain the answer step by step and don't handwrite the answer. Thank you.
The information that follows pertains to Richards Refrigeration, Inc.: a. At December 31, 2021, temporary differences existed between the financial statement book values and the tax bases of the following: ($ in millions) Future Taxable Tax (Deductible) Basis Amount $90 $ 30 0 50 0 (25) Book Value $120 50 25 Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss contingency b. No temporary differences existed at the beginning of 2021. c. Pretax accounting income was $200 million and taxable income was $145 million for the year ended December 31, 2021. The tax rate is 25%. Required: 1. Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2021. 2. What is the 2021 net incomeStep by Step Solution
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