Required information [The following information applies to the questions displayed below] Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): Revenues Expenses Pretax accounting income (income statement) Taxable income tax return) Tax rate: 25% 2021 $ 908 768 $ 140 $ 122 2022 $ 988 881 $184 $ 206 a Expenses each year include $36 million from a two-year casualty insurance policy purchased in 2021 for $72 million The cost is tax deductible in 2021 b. Expenses include $2 million insurance premiums each year for life insurance on key executives. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2021 and 2022 were $37 million and $39 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were 529 million ($14 million collected in 2020 but not recognized as revenue until 2021) and $37 million, respectively. Hint View this as two temporary differences-one reversing in 2021 one originating in 2021 d. 2021 expenses included a $18 million unrealized loss from reducing Investments (classified as trading securities) to fair value. The investments were sold and the loss realized in 2022 HOVANIE View this as two temporary differences-one reversing in 2021, one originating in 2021 d 2021 expenses included a $18 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 $10 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 $6 million and no deferred tax liability 2. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income Using the schedule, prepare the necessary joumal entry to record income taxes for 2021 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 de 5,500,000 should be entered as 5.5)) Amounts [2022) $ 140.0 2.0 (36.0) Pretax accounting income Permanent difference: Life insurance premiums Temporary differences: Casualty insurance expense Subscriptions-2020 Subscriptions--2021 Unrealized loss Loss contingency Taxable income (10.0) 96.0 $ $ 0.0 Enacted tax rate (%) Tax payable currently Deferred tax liability Deferred tax asset Required information Required 1 Required 2 Prepare the necessary fournal 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 (5,500,000 should be entered as 5.5)) View transaction list Journal entry worksheet 1 Record 2021 Income taxes Note Entdebts before credits Transaction Goncal Journal Debit Credit co