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Prepare a schedule that reconciles the difference between pretax accounting income and taxable income.

Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to $1$ decimal place $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$

$\backslash$table$[[($ $ in millions$),\backslash$table$[[$Current$],[$Year $2024]],$Future Taxable Amounts $[2025],$Future Deductible Amounts $[2025]],[$Pretax accounting income,$ $144\mathrm{.}0,,],[$Permanent difference:$],[$Life insurance premiums,$2\mathrm{.}0,,],[$Temporary differences:$],[$Casualty insurance expense,$(52\mathrm{.}0),52\mathrm{.}0,],[$Subscriptions$-2023,(30\mathrm{.}0),,],[$Subscriptions$-2024,36\mathrm{.}0,,],[$Unrealized loss,$36\mathrm{.}0,,(36\mathrm{.}0)],[$Loss contingency,$(26\mathrm{.}0),,],[$Taxable income,$ $110\mathrm{.}0,,],[,$$$252\mathrm{.}0,$$$(36\mathrm{.}0)],[$Enacted tax rate $(\%),25\mathrm{.}0\%,25\mathrm{.}0\%,25\mathrm{.}0\%],[$Tax payable currently,$27\mathrm{.}5,,],[$Deferred tax liability,,,$],[$Deferred tax asset,,,$]]$ Complete this question by entering your answers in the tabs below.

Prepare the necessary journal entry to record income taxes for $2024.$

Note: 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 $5\mathrm{.}5).$ Compute the deferred tax amounts that should be reported on the $2024$ balance sheet.

Note: Enter your answers in millions rounded to $1$ decimal place $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5)$

Answer is not complete.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 $2025.$

Complete this question by entering your answers in the tabs below.

Prepare a schedule that reconciles the difference between pretax accounting income and taxable income.

Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to $1$ decimal place $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$

$\backslash$table$[[($$ in millions$),\backslash$table$[[$Current$],[$Year $2025]],\backslash$table$[[$Future Taxable$],[$Amounts $[2026]]],\backslash$table$[[$Future Deductible$],[$Amounts $[2026]]]],[$Pretax accounting income,,,$],[$Permanent difference:,,,$],[$Life insurance premiums,,,$],[$Temporary differences:,,,$],[$Casualty insurance $($reversing$),,,],[$Subscriptions$-2024,,,],[$Subscriptions$-2025,,,],[$Unrealized loss $($reversing$),,,],[$Taxable income $($income tax return$),,,],[,,,],[$Enacted tax rate $(\%),,,],[$Tax payable currently,,,$],[$Deferred tax liability,,,$],[$Deferred tax asset,,,$]]$Required information

$[$The following information applies to the questions displayed below.$]$

Arndt, Incorporated reported the following for $2024$ and $2025($ $ in millions$)$:

Tax rate: $25\%$

a$.$ Expenses each year include $$52$ million from a two$-$year casualty insurance policy purchased in $2024$ for $$104$

million. The cost is tax deductible in $2024.$

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 $2024$ and $2025$

were $$53$ million and $$69$ million, respectively. Subscriptions included in $2024$ and $2025$ financial reporting

revenues were $$47$ million $($ $$30$ million collected in $2023$ but not recognized as revenue until $2024)$ and $$53$ million,

respectively. Hint. View this as two temporary differences$-$one reversing in $2024$; one originating in $2024.$

d$.2024$ expenses included a $$36$ million unrealized loss from reducing investments $($classified as trading securities$)$ to

fair value. The investments were sold and the loss realized in $2025.$

e$.$ During $2023,$ accounting income included an estimated loss of $$26$ million from having accrued a loss contingency.

The loss was paid in $2024,$ at which time it is tax deductible.

f$.$ At January $1,2024,$ Arndt had a deferred tax asset of $$14$ million and no deferred tax liability.

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 $2024.$

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