Required information [The following information applies to the questions displayed below.] Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): 2021 Revenues $ 988 2022 $1,020 Expenses 800 820 Pretax accounting income (income statement) Taxable income (tax return) $ 188 $146 $ 200 $ 230 Tax rate: 25 a. Expenses each year include $60 million from a two-year casualty insurance policy purchased in 2021 for $120 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 $53 million and $55 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $45 million ($30 million collected in 2020 but not recognized as revenue until 2021) and $53 million, respectively. Hint View this as two temporary differences-one reversing in 2021; one originating in 2021. d. 2021 expenses included a $34 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 $26 million from having accrued a loss contingency. The loss was paid in 2021, at which time it is tax deductible. 1. At January 1, 2021, Arndt had a deferred tax asset of $14 million and no deferred tax liability. Required 1 Required 2 Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. (Amo- deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e.. should be entered as 5.5).) ($ in millions) Pretax accounting income Current Year Future Taxable Amounts 2022 [2023] Future Deductible Amounts [2023] 200.0 Permanent difference: Life insurance premiums 2.0 Temporary differences: Casualty insurance (reversing) 60.0 Subscriptions-2021 (38.0) ( Subscriptions-2022 40.0 (40.0) Unrealized loss (reversing) (34.0) Taxable income (income tax return) 230.0 Enacted tax rate (%) Tax payable currently 0 (40.0) 25.0% 25.0% 25.0% 57.5 Deferred tax liability Deferred tax asset 0 10.0 Required 1 Required 2 Required 1 Required 2 Prepare the necessary journal entry to record income taxes for 2022. (If no entry is required for a transaction/event, sele "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 5.5).) 1 No Transaction 1 General Journal Income tax expense Deferred tax liability Income tax payable Deferred tax asset < Required 1 Required 2 > Debit Credit 56.5 x 15.0 57.5 8.0