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 $56 million and taxable income was $12 million for the year ended December 31, 2016. 2. The difference was due to three items: a. Tax depreciation exceeds book depreciation by $40 million in 2016 for the business complex acquired that year. This amount is scheduled to be $60 million in 2017 and to reverse as ($50 million) and ($50 million) in 2018, and 2019, respectively. b. Insurance of $8 million was paid in 2016 for 2017 coverage. c. A $4 million loss contingency was accrued in 2016, to be paid in 2018. 3. No temporary differences existed at the beginning of 2016. 4. The tax rate is 40%. Required: 1. Determine the amounts necessary to record income taxes for 2016 and prepare the appropriate journal 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)