Required information Complete this question by entering your answers in the tabs below.

Required $2$

Prepare a schedule that reconciles the difference between pretax accounting income and taxable income.

Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to $1$ decimal place $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$

$\backslash$table$[[($$ in millions$),\backslash$table$[[$Current$],[$Year $2025]],\backslash$table$[[$Future Taxable$],[$Amounts $[2026]]],\backslash$table$[[$Future Deductible$],[$Amounts $[2026]]]],[$Pretax accounting income$],[$Permanent difference:$],[$Life insurance premiums$],[$Temporary differences:$],[$Casualty insurance $($reversing$)],[$Subscriptions$-2024],[$Subscriptions$-2025],[$Unrealized loss $($reversing$)],[$Taxable income $($income tax return$),0\mathrm{.}0,,],[,0,0\mathrm{.}0],[$Enacted tax rate $(\%)],[$Tax payable currently$],[$Deferred tax liability$],[$Deferred tax asset,,,$]]$ Journal entry worksheet

$1$

Record $2025$ income taxes.

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Credit$],[1,,,],[,,,],[,,,],[,,,],[,,,]]$ Prepare the necessary journal entry to record income taxes for $2025.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in

millions rounded to $1$ decimal place $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$

View transaction listPrepare the necessary journal entry to record income taxes for $2025.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in

millions rounded to $1$ decimal place $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$

$[$The following information applies to the questions displayed below.$]$

Arndt, Incorporated reported the following for $2024$ and $2025($ $ in millions$)$:

Tax rate: $25\%$

a$.$ Expenses each year include $$62$ million from a two$-$year casualty

insurance policy purchased in $2024$ for $$124$ million. The cost is tax

deductible in $2024.$

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 $2024$ and $2025$ were $$63$ million and

$$79$ million, respectively. Subscriptions included in $2024$ and $2025$

financial reporting revenues were $$57$ million $($ $$40$ million collected in

$2023$ but not recognized as revenue until $2024)$ and $$63$ million,

respectively. Hint. View this as two temporary differences$-$one

reversing in $2024$; one originating in $2024.$

d$.2024$ expenses included a $$46$ million unrealized loss from reducing

investments $($classified as trading securities$)$ to fair value. The

investments were sold and the loss realized in $2025.$

e$.$ During $2023,$ accounting income included an estimated loss of $$36$

million from having accrued a loss contingency. The loss was paid in

$2024,$ at which time it is tax deductible.

f$.$ At January $1,2024,$ Arndt had a deferred tax asset of $$19$ million and no

deferred tax liability.

Prepare a schedule that reconciles the difference between pretax accounting income and

taxable income. Using the schedule, prepare the necessary journal entry to record income

taxes for $2024.$