$!$

Required information

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

Amdt, 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 executlives.

c$.$ Arndt sells one$-$year subscriptlons 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 $2025$ financlal reporting

revenues were $$57$ million $($ $$40$ million collected in $2023$ but not recognized as revenue until $2024)$ and $$63$ million,

respectlvely. 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 $($classlfied as trading securltes$)$ to

falr 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 pald in $2024,$ at which time it is tax deductible.

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

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 $2025.$

Answer is complete but not entirely correct.

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

Prepare the necessary joumal 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 $5\mathrm{.}5).$