Required information [The following information applies to the questions displayed below.] Arndt, Incorporated reported the following for 2024 and 2025 (\$ in millions): a. Expenses each year include $66 million from a two-year casualty insurance policy purchased in 2024 for $132 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 $67 million and $83 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $61 million ( $44 million collected in 2023 but not recognized as revenue until 2024 ) and $67 million, respectively. Hint. View this as two temporary differences-one reversing in 2024; one originating in 2024. d. 2024 expenses included a $50 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 $40 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 $21 million and no deferred tax liability. 5. Suppose that during 2025, tax legislation was passed that will lower Arndt's effective tax rate to 15% beginning in 2026 . Prepare a shedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the hecessary journal entry to record income taxes for 2025 . Complete this question by entering your answers in the tabs below. Suppose that during 2025, tax legislation was passed that will lower Arndt's effective tax rate to 15% beginning in 2026. 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 5.5)