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The information that follows pertains to Richards Refrigeration, Inc.: a. At December 31, 2021, temporary differences existed between the financial statement book values and the

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The information that follows pertains to Richards Refrigeration, Inc.: a. At December 31, 2021, temporary differences existed between the financial statement book values and the tax bases of the following: Book Value ($ in millions) Future Taxable Tax (Deductible) Basis Amount $ 44 64 (39) $148 $184 Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss contingency 64 39 b. No temporary differences existed at the beginning of 2021. c. Pretax accounting income was $214 million and taxable income was $145 million for the year ended December 31, 2021. The tax rate is 25% Required: 1. Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2021. 2. What is the 2021 net income? Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 G) Required 2 Complete the following table given below to record income taxes for 2021. (Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). Negative amounts should be entered with a minus sign.) Tax Rate % = Tax S Recorded as: ($ in millions) $ 214.00 Pretax accounting income Permanent differences X = x Income subject to taxation Temporary Differences Depreciation Prepaid insurance Liability - loss contingency Income taxable in current year = X = Journal entry worksheet 1 > > Record 2021 income taxes. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry Clear entry View general journal

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