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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 $

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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 $ 954 810 Revenues Expenses Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 251 2022 $1,046 866 S 180 $ 214 $ 144 $ 90 o. Expenses each year include $72 million from a two-year casualty insurance policy purchased in 2021 for $144 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 $73 million and $89 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $67 million ($52 million collected in 2020 but not recognized as revenue until 2021) and $73 million, respectively. Hint. View this as two temporary differences--one reversing in 2021; one originating in 2021. d. 2021 expenses included a $56 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 $46 million from having accrued a loss contingency. The loss was paid in 2021, at which time it is tax deductible. t. At January 1, 2021. Arndt had a deferred tax asset of $4 million and no deferred tax liability 4 Required information Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (le, 5,500,000 should be entered as 5.5)) Current Future Taxable Year 2022 Amounts (2023) 180.0 0 Future Deductible Amounts (2023) 0 2.0 0 0 (5 in millions) Protax accounting income Permanent difference: Life insurance premiums Temporary differences Casualty insurance (reversing) Subscriptions-2021 Subscriptions-2022 Unrealized loss (reversing) Taxable income income tax return) 0 0 0 0 74.0 72.0 (58.0) 74.0 (56.0) 214.0 0 0 0 0 74.0 25.0% Enacted tax rate (%) Required information Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. (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).) Current Year 2022 180.0 Future Taxable Amounts [2023) 0 Future Deductible Amounts [2023] 0 2.0 0 0 (s in millions) Protax accounting income Permanent difference: Life Insurance premiums Temporary differences: Casualty Insurance (reversing) Subscriptions-2021 Subscriptions-2022 Unrealized loss (reversing) Taxable income (income tax return) 0 0 0 0 74.0 72.0 (58.0) 74.0 (56.0) 214.0 0 0 0 0 74.0 25.0% Enacted tax rate (%) Peconciles the difference between pretax accounting income and taxable inco me the necessary journal entry to record income taxes for 2022. mplete this question by entering your answers in the tabs below. quired 1 Realired 2 pare the necessary journal entry to record income taxes for 2022. (If no entry is required for a transaction/e ry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (I.e., 5,500, )) lew transaction list View journal entry worksheet No 1 Transaction 1 General Journal Credit Income tax expense Deferred tax liability Income tax payable Deferred tax asset Debit 45,550,000.0 18,000,000.0 53,500,000.0 10,000,000.0

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