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The following information is from Richards Refrigeration, Inc.It is related to: As of 31 December 2021, the following temporary differences exist between the carrying values

The following information is from Richards Refrigeration, Inc. It is related to:

  1. As of 31 December 2021, the following temporary differences exist between the carrying values of the financial statements and their tax bases:
(in millions of dollars)
Book Valuetax
base
Future Taxable
(Deductible)
Amount
Buildings and equipment (after deducting accumulated depreciation)$158$109$49
prepaid insurance69069
Liability—probability of loss440(44)
  1. At the beginning of 2021, there were no temporary differences.
  2. For the year ended December 31, 2021, pre-tax accounting income was $219 million and taxable income was $145 million. The tax rate is 25%.

Required:
1. Fill in the table given below and prepare the appropriate journal entry to record income taxes for 2021.
2. What is his 2021 net income?


(in millions of dollars)Xtax rate %=tax $It was recorded as:
Accounting income before tax$219.0
Permanent differences
taxable income219.0X=0,00 $
Temporary Differences
X=
X=
X=
taxable income in the current year$219.0X=

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