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The information that follows pertains to Richards Refrigeration, Inc.:

a.	At December 31, 2016, temporary differences existed between the financial statement carrying amounts and the tax bases of the following:

	($ in millions)
	Carrying Amount		Tax Basis		Future Taxable (Deductible) Amount
Buildings and equipment (net of accumulated depreciation)	$	154	$	107	$	47
Prepaid insurance		67		0		67
Liabilityloss contingency		42		0		(42)

b.	No temporary differences existed at the beginning of 2016.
c.	Pretax accounting income was $217 million and taxable income was $145 million for the year ended December 31, 2016. The tax rate is 35%.

Required:

1.	Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Negative amounts should be entered with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5))
	($ in millions) x Tax Rate % = Tax $ Recorded as: Pretax accounting income $217.0 Permanent differences Income subject to taxation x = Temporary Differences x = x = x = Income taxable in current year x =

2.

Journal Entry Worksheet

Record 2016 income taxes.

3.

2.	What is the 2016 net income? (Enter your answer in millions and round your answer to 1 decimal places.)

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