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

a$.$ Expenses each year include $$54$ million from a two$-$year casualty insurance policy purchased in $2024$

for $$108$ 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 $$55$ million and $$71$ million, respectively. Subscriptions included in $2024$ and $2025$

financial reporting revenues were $$49$ million $($$$32$ million collected in $2023$ but not recognized as

revenue until $2024)$ and $$55$ million, respectively. Hint. View this as two temporary differences$-$one

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

d$.2024$ expenses included a $$38$ 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 $$28$ 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 $$15$ 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 $2025.$

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

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 $5\mathrm{.}5).$