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The information that follows pertains to Richards Refrigeration, Incorporated: At December 31, 2024, temporary differences existed between the financial statement book values and the tax
The information that follows pertains to Richards Refrigeration, Incorporated:
At December 31, 2024, 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) | $ 136 | $ 98 | $ 38 |
Prepaid insurance | 58 | 0 | 58 |
Liabilityloss contingency | 33 | 0 | (33) |
No temporary differences existed at the beginning of 2024.
Pretax accounting income was $208 million and taxable income was $145 million for the year ended December 31, 2024. The tax rate is 25%.
Required:
- Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2024.
- What is the 2024 net income?
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