Your assistance is greatly appreciated. Supposed that during 2022, tax legislation was passed that will lower Arndt's effective tax rate to 15% beginning 2023. Prepare a schedule thaYour assistance in this regard is greatly appreciated. Suppose that during 2022, tax legislation was passed that will lower Arndts effective tax rate to 15% beginning in 2023. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for 2022.

My journal entries was (DR) Income tax expense $50 (i.e. was WRONG), and (DR) Deferred Tax Liability $3 (i.e. was WRONG) , (CR) Income Tax payable $50 (i.e. was CORRECT), (CR) Deferred tax asset $3 (i.e. was WRONG). The account titles were correct with the Income Tax Payable $50 only correct amount.

Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): 2021 2022 $888 760 $980 800 Revenues Expenses Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 25% $ 128 $ 116 $ 180 $ 200 a. Expenses each year include $30 million from a two-year casualty insurance policy purchased in 2021 for $60 million. The cost is tax deductible in 2021. b. Expenses include $2 million insurance premiums each year for life insurance on key executives. C. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2021 and 2022 were $33 million and $35 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $25 million ($10 million collected in 2020 but not recognized as revenue until 2021) and $33 million, respectively. Hint: View this as two temporary differencesone reversing in 2021; one originating in 2021. d. 2021 expenses included a $14 million unrealized loss from reducing investments (classified as trading securi- ties) to fair value. The investments were sold and the loss realized in 2022. e. During 2020, accounting income included an estimated loss of S6 million from having accrued a loss contin- gency. The loss was paid in 2021, at which time it is tax deductible. f. At January 1, 2021, Arndt had a deferred tax asset of $4 million and no deferred tax liability