The information that follows pertains to Richards Refrigeration, Inc.:
a. At December 31, 2018, temporary differences existed between the financial statement carrying amounts and the tax bases of the following ($ in millions):

b. No temporary differences existed at the beginning of 2018.
c. Pretax accounting income was $200 million and taxable income was $145 million for the year ended December 31, 2018. The tax rate is 40%.
Required:
1. Determine the amounts necessary to record income taxes for 2018, and prepare the appropriate journal entry.
2. What is the 2018 net income?

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Future Taxable (Deductible) Amount CarryingTax Amount Basis Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss contingency $120 50 25 $90 0 0 $ 30 50 (25)