Requlred Information Problem 16-8 (Algo) Multiple differences; taxable income given; two years; change in tax rate; financial statement effects [LO16-1,16-2,16-3,16-5,16-6,16-8] [The following information applies to the questions displayed below.] Arndt, Incorporated reported the following for 2024 and 2025 ( $ in millions): a. Expenses each year include $62 million from a two-year casualty insurance policy purchased in 2024 for $124 million. The cost is tax deductible in 2024. 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 2024 and 2025 were $63 million and $79 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $57 million ( $40 million collected in 2023 but not recognized as revenue until 2024 ) and $63 million, respectively. Hint. View this as two temporary differences-one reversing in 2024 ; one originating in 2024. d. 2024 expenses included a $46 million unrealized loss from reducing investments (classified as trading securities) to fair value. The investments were sold and the loss realized in 2025 . e. During 2023, accounting income included an estimated loss of $36 million from having accrued a loss contingency. The loss was paid in 2024, at which time it is tax deductible. f. At January 1, 2024, Arndt had a deferred tax asset of $19 million and no deferred tax liability. Problem 16-8 Part 1 Requlred: 1. Which of the five differences described in items a-e are temporary and which are permanent differences