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Required information [The following information applies to the questions displayed below.] Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): 2021 2022
Required information [The following information applies to the questions displayed below.] Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): 2021 2022 Revenues $938 Expenses 780 $1,000 810 Pretax accounting income (income statement) $158 $ Taxable income (tax return) Tax rate: 25 $131 190 $215 a. Expenses each year include $45 million from a two-year casualty insurance policy purchased in 2021 for $90 million. The cost is tax deductible in 2021. 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 2021 and 2022 were $43 million and $45 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $35 million ($20 million collected in 2020 but not recognized as revenue until 2021) and $43 million, respectively. Hint View this as two temporary differences-one reversing in 2021; one originating in 2021 d. 2021 expenses included a $24 million unrealized loss from reducing investments (classified as trading securities) to fair value. The investments were sold and the loss realized in 2022. e. During 2020, accounting income included an estimated loss of $16 million from having accrued a loss contingency. The loss was paid in 2021, at which time it is tax deductible. f. At January 1, 2021, Arndt had a deferred tax asset of $9 million and no deferred tax liability. inema Heinin the schedule ces Prepare the necessary journal entry to record income taxes for 2021. (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 (Le, 5,500,000 should be entered as 5.5).) View transaction lis Journal entry worksheet 1 Record 2021 income taxes. Note: Enter debits before credits Transaction General Journal Debit Credi 1 Income tax expense 30.5 Deferred tax asset 2.0 Deferred tax liability Income tax payable
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