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 $70 million and taxable income was $8 million for the year ended December 31,2021 . 2. The difference was due to three items: a. Tax depreciation exceeds book depreciation by $60mili in in 2021 for the business complex acquired that year. This amount is scheduled to be $80 million in 2022 and to reverse as (\$70 million) and (\$70 million) in 2023 and 2024 , respectively. b. Insurance of $8 million was paid in 2021 for 2022 coverage. c. A $6 million loss contingency was accrued in 2021, to be pald in 2023 . 3. No temporary differences existed at the beginning of 2021 . 4. The tax rate is 25%. Required: 1. Determine the amounts necessary to record income taxes for 2021 , and prepare the appropriate journal entry. 2. Assume the enacted federal income tax law specifies that the tax rate will change from 25% to 20% in 2023 . 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 2022 before reversing the next two years. Upon consulting PricewaterhouseCoopers' Comperio database, you found: 441 Depreciable and amortizable assets Only the reversals of the temporary difference at the balance sheet date would be scheduled. Future originations are not considered in determining the reversal pattern of temporary differences for depreciable assets. FAS 109 [FASB ASC 740 -Income Taxes] is silent as to how the balance sheet date temporary differences are deemed to reverse, but the FiFO pattern is intended. You interpret thot to mean, When future taxable amounts are being scheduled, and a portion of a temporary difference has yet to originate, only the reversals of the temporary difference at the balance sheet date can be scheduled and multiplied by the tax rate that will be in effect when the difference reverses. Future originations (like the depreciation difference the second year) are not considered when determining the timing of the reversal. For the existing temporary difference, it is assumed that the difference will reverse the first year the difference begins reversing. Determine the amounts necessary to record income taxes for 2021 , and prepare the appropriate journal entry. Complete this question by entering your answers in the tabs below. Determine the amounts necessary to record income taxes for 2021 , and prepare the appropeiate journal entry. (If no entry is required for a transaction/event, select "No joumal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (1.e. 5,500,000 should be entered as 5,5).) 441 Depreciable and amortizable assets Only the reversals of the temporary difference at the balance sheet date would be scheduled. Future originations are not considered in determining the reversal pattern of temporary differences for depreciable assets. FAS 109 [FASB ASC 740 -Income Taxes] is silent to how the balance sheet date temporary differences are deemed to reverse, but the FIFO pattern is intended. You interpret that to mean, when future taxable amounts are being scheduled, and a portion of a temporary difference has yet to originate, only the reversals of the temporary difference at the balance sheet date can be scheduled and multiplied by the tax rate thi will be in effect when the difference reverses. Future originations (like the depreciation difference the second year) are not considere when determining the timing of the reversal. For the existing temporary difference, it is assumed that the difference will reverse the first year the difference begins reversing. Determine the amounts necessary to record income taxes for 2021 , and prepare the appropriate journal entry. Complete this question by entering your answers in the tabs below. Determine the amounts necessary to record income taxes for 2021, and prepare the appropriate joumal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Journal entry worksheet Record 2021 income taxes. Note: Enter debits before chedits