Required information

Problem $16-8($Algo$)$ Multiple differences; taxable income given; two years; change in tax rate; financial

statement effects $[$LO$16-1,16-2,16-3,16-5,16-6,16-8]$

$[$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 $$68$ million from a two$-$year casualty insurance policy purchased in $2024$ for $$136$

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 $$69$ million and $$85$ million, respectively. Subscriptions included in $2024$ and $2025$ financial reporting

revenues were $$63$ million $($ $$46$ million collected in $2023$ but not recognized as revenue until $2024)$ and $$69$ million,

respectively. Hint. View this as two temporary differences$-$one reversing in $2024$; one originating in $2024.$

d$.2024$ expenses included a $$52$ 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 $$42$ 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 $$22$ million and no deferred tax liability.

Problem $16-8$ Part $3$

Compute the deferred tax amounts that should be reported on the $2024$ balance sheet.

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

Answer is not complete.