You are the new accounting manager at the Barry Transport Company Your CFO has asked you to provide input on the company's income tax position based on the following: 1. Pretax accounting income was $50 miltion and taxable income was $6 million for the year ended December 31,2024 2. The difference was due to three items: a. Tax depreciation exceeds book depreciation by $40 milion in 2024 for the business complex acquired that year. This amount is scheduled to be $60 million in 2025 and to reverse as ( $50 million) and ( $50 million) in 2026 and 2027. respectively b. Insurance of $8 milion was paid in 2024 for 2025 coverage. c. A $4 milion loss contingency was accrued in 2024, to be paid in 2026. 3. No temporary differences existed at the beginning of 2024 4. The taxiate is 25% Required: 1. Determine the amounts necessary to record income taxes for 2024 , and prepare the appropriate joumal entry 2. Assume the enacted federal income tax law specifies that the tax rate will change from 25% to 20% in 2026 . When ischeduling 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 PricewaterhouseCoopers' Comperio database, you found 441 Depreciable and omortizable assets Only the reversals or the temporary difference at the balance sheet date would be scheduled. Future onginations are not considered in determining the reversal pattern of temporary differences for depreciable assets. FAS 109 WFASB ASC 740-income Taxes] is silent as to now the balance sheet date temporary differences are deemed to reverse, but the Fifo pattem is intended