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The information that follows pertains to Richards Refrigeration, Inc.: a. At December 31, 2016, temporary differences existed between the financial statement carrying amounts and the

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The information that follows pertains to Richards Refrigeration, Inc.: a. At December 31, 2016, temporary differences existed between the financial statement carrying amounts and the tax bases of the following: ($ in millions) Future Taxable Carrying Amount $148 Tax (Deductible) Basis $104 0 0 Amount $ 44 Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-oss contingency 64 39 64 (39) b. No temporary differences existed at the beginning of 2016 c. Pretax accounting income was $214 million and taxable income was $145 million for the year ended December 31, 2016. The tax rate is 35% Required: 1. Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Negative amounts should be entered with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5)) Tax $ ($ in millions) 214.0 x Tax Rate % Recorded as: Pretax accounting income Permanent differences Income subiect to taxation 214.0x 0.0 Temporary Differences Income taxable in current year 214.0 x

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