You are the new accounting manager at the Barry Transport Company. Your CFO h$$s asked you to provide input on the company's income tax position based on the following:

Pretax accounting income was $$64$ million and taxable income was $$10$ million for the year ended December $31,2024.$

The difference was due to three items:

a$.$ Tax depreciation exceeds book depreciation by $$50$ million in $2024$ for the business complex acquired that year. This amount is scheduled to be $$70$ million in $2025$ and to reverse as $($ $$60$ million$)$ and $($ $$60$ million$)$ in $2026$ and $2027.$ respectively.

b$.$ Insurance of $$10$ million was paid in $2024$ for $2025$ coverage:

c$.$ A $$6$ million loss contingency was accrued in $2024,$ to be paid in $2026$

No temporary differences existed at the beginning of $2024$

The tax rate is $25\%.$

Required:

Determine the amounts necessary to record income taxes for $2024$ and prepare the appropriate journal entry.

Assume the enacted federal income tax law specifies that the tax rate will change from $25\%$ to $20\%$ in $2026.$ When scheduling the reversal of the depreciation difference, you were uncertain as to how to deal with the fact that the difference will continue to originate in $2025$ before reversing the next two years. Upon consulting Pricewaterhouse Coopers' Comperio database, you found: