Requlred information [The following information appllos to the questions displayed below] Arndt, Inc, reported the following for 2021 and 2022 (\$ in aseiont): a. Expenses each yeas include $39 milion from a two-year casuaty insueance polley purchosed in 202i for $78 million. The cost is tax deductible in 2021 . b. Expenses include $2 milition insurance premlums each year for life insurance on key executlves. c. Arndt sells one-year subscriptions to a weekly Joumal, Subscription salos collected and taxable in 2021 and 2022 were $39 milion and $41 millon, respectwoly. Subscriptions included in 2021 and 2022 financial reporting revenues were 531 milion (\$16 milien collected in 2020 but not recognized as revenue until 2021 and $39 millon, respectively. Hint. Vew this as two temporary differences-one reversing in 2021 ; one oniginating in 2021 . a. 2021 expenses inctuded o $20 milion unrealized loss from reducing investments (classifind as trading secuelies) to fair value. The imvestments were sold and the hoss realired in 2022 e. During 2020, occounting income included an estimated loss of $12 millon from having accried a loss contingency. The loss was paid in 2021, at which time it is tax deductible. t. At Jnnuary 1, 2021, Amet had a deferted tak asset of $7 milien and no deferred tax lability. 6. Suppose that duning 2022, tax legislation was passed that witlower Arsdt's effective tax rate to 15x beginning in 2023 . Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary joutnal entry to record income taxes for 2022 . (3) Answer is complete but not entirely correct. Complete this question by entering yeur answers in the tabs below. Prepere the necessary joumal entry to recend income taxes for 2022. (if no eotry is required for a trancactionevent, sevect "No sournal emry required' in the fint accoumt feld. Enter your answers in millons rounded to I decimal place (l.e.. s,500,000 should be entered as 5.5). Requlred information [The following information appllos to the questions displayed below] Arndt, Inc, reported the following for 2021 and 2022 (\$ in aseiont): a. Expenses each yeas include $39 milion from a two-year casuaty insueance polley purchosed in 202i for $78 million. The cost is tax deductible in 2021 . b. Expenses include $2 milition insurance premlums each year for life insurance on key executlves. c. Arndt sells one-year subscriptions to a weekly Joumal, Subscription salos collected and taxable in 2021 and 2022 were $39 milion and $41 millon, respectwoly. Subscriptions included in 2021 and 2022 financial reporting revenues were 531 milion (\$16 milien collected in 2020 but not recognized as revenue until 2021 and $39 millon, respectively. Hint. Vew this as two temporary differences-one reversing in 2021 ; one oniginating in 2021 . a. 2021 expenses inctuded o $20 milion unrealized loss from reducing investments (classifind as trading secuelies) to fair value. The imvestments were sold and the hoss realired in 2022 e. During 2020, occounting income included an estimated loss of $12 millon from having accried a loss contingency. The loss was paid in 2021, at which time it is tax deductible. t. At Jnnuary 1, 2021, Amet had a deferted tak asset of $7 milien and no deferred tax lability. 6. Suppose that duning 2022, tax legislation was passed that witlower Arsdt's effective tax rate to 15x beginning in 2023 . Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary joutnal entry to record income taxes for 2022 . (3) Answer is complete but not entirely correct. Complete this question by entering yeur answers in the tabs below. Prepere the necessary joumal entry to recend income taxes for 2022. (if no eotry is required for a trancactionevent, sevect "No sournal emry required' in the fint accoumt feld. Enter your answers in millons rounded to I decimal place (l.e.. s,500,000 should be entered as 5.5)
