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

Tax rate: $25\%$

a$.$ Expenses each year include $$58$ million from a two$-$year casualty insurance policy purchased in $2024$ for $$116$

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 $$59$ million and $$75$ million, respectively. Subscriptions included in $2024$ and $2025$ financial reporting

revenues were $$53$ million $($ $$36$ million collected in $2023$ but not recognized as revenue until $2024)$ and $$59$ million,

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

d$.2024$ expenses included a $$42$ 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 $$32$ 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 $$17$ million and no deferred tax liability.

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

orepare the necessary journal entry to record income taxes for $2024.$

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Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Prepare journal entry to record income taxes for $2024.$