The information that follows pertains to Richards Refrigeration, Inc.:

1. At December 31, 2021, temporary differences existed between the financial statement book values and the tax bases of the following:

	($ in millions)
	Book Value			Tax Basis			Future Taxable (Deductible) Amount
Buildings and equipment (net of accumulated depreciation)	$	158		$	109			$	49
Prepaid insurance		69			0				69
Liabilityloss contingency		44			0				(44	)

2. No temporary differences existed at the beginning of 2021.
3. Pretax accounting income was $219 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?

($ in millions)	x	Tax Rate %	=	Tax $	Recorded as:
Pretax accounting income	$219.0
Permanent differences
Income subject to taxation	219.0	x		=	$0.00
Temporary Differences
		x		=
		x		=
		x		=
Income taxable in current year	$219.0	x		=

Journal entry worksheet

• Record 2021 income taxes.

Transaction	General Journal	Debit	Credit
1