Required information [The following information applies to the questions displayed below.] Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): Revenues 2021 5938 780 5 159 $ 131 2022 $1,ee 818 $ 190 1 215 Pretax accounting income (income statement) Taxable income tax return) Tax rates25% 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 ond 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 os trading securities) to foir 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 tox deductible. At Jonusry 1, 2021, Arndt hed o deferred tax esset of $9 million and no deferred tax liability. 2. Prepare a schedule that reconciles the difference between pretex accounting income and toxable income. Using the schedule. prepare the necessary journal entry to record income taxes for 2021. Complete this question by entering your answers in the tabs below. Required 1 Requited 2 Prepare a schedule that reconciles the difference between pretax accounting income and laxable income. (Amounts to be deducted should be indicated with #minus sign. Enter your sin millions rounded to 1 decimal place the, 5,500.000 should be entered as 5.5).) Current Year 2021 (5 in millions) Future Deductible Future Taxable Amounta 12022] Amounte [2022 Pretax accounting income Permanent a terence Life insurance premium Temporary cifferences Casualty insurance expense Subscription 2020 Subscriptions 2021 Unreutved loss Los contingency Taxable Enacted tax rate () Tax payable currently Deferred tsx linatility Deferred titx asal Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 (i.e., 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet