Required information [The following information applies to the questions displayed below.] Arndt, Incorporated reported the following...
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Required information [The following information applies to the questions displayed below.] Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): 2024 2025 Revenues $ 918 Expenses 774 $ 1,010 830 Pretax accounting income (income statement) $ 144 $ 180 Taxable income (tax return) Tax rate: 25% $ 126 $ 214 a. Expenses each year include $36 million from a two-year casualty insurance policy purchased in 2024 for $72 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 $37 million and $53 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $31 million ($14 million collected in 2023 but not recognized as revenue until 2024) and $37 million, respectively. Hint. View this as two temporary differences-one reversing in 2024; one originating in 2024. d. 2024 expenses included a $20 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 $10 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 $6 million and no deferred tax liability. 2. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for 2024. Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required 1 2 Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). ($ in millions) Current Year 2024 Future Taxable Amounts [2025] Future Deductible Amounts [2025] Pretax accounting income $ 144.0 Permanent difference: Life insurance premiums 2.0 Temporary differences: Casualty insurance expense Subscriptions-2023 (36.0 31.0X Subscriptions-2024 Unrealized loss Loss contingency Taxable income Enacted tax rate (%) Tax payable currently Deferred tax liability Deferred tax asset (20.0 X (10.0 $ 111.0 19.5X 53.0X 20 $ 53.0 5.0 < Required 1 Required 2 > 2. 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required 1 2 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 5.5). No 1 Transaction 1 General Journal Income tax expense Deferred tax asset Deferred tax liability Income tax payable < Required 1 Required 2 > Show less Debit 19.5X Credit 6.0 5.0X 19.5X Required information [The following information applies to the questions displayed below.] Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues Expenses 2024 $ 918 774 Pretax accounting income (income statement) $ 144 Taxable income (tax return) $ 126 2025 $ 1,010 830 $ 180 $ 214 Tax rate: 25% a. Expenses each year include $36 million from a two-year casualty insurance policy purchased in 2024 for $72 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 $37 million and $53 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $31 million ($14 million collected in 2023 but not recognized as revenue until 2024) and $37 million, respectively. Hint. View this as two temporary differencesone reversing in 2024; one originating in 2024. d. 2024 expenses included a $20 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 $10 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 $6 million and no deferred tax liability. 3. Compute the deferred tax amounts that should be reported on the 2024 balance sheet. Note: Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Deferred tax amounts ($ in millions) Classification Net current deferred tax liability Net current deferred tax liability Amount ! Required information [The following information applies to the questions displayed below.] Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): 2024 2025 $ Revenues $ 918 Expenses 774 1,010 830 Pretax accounting income $ 144 $ 180 (income statement) Taxable income (tax return) $ 126 $ 214 Tax rate: 25% a. Expenses each year include $36 million from a two-year casualty insurance policy purchased in 2024 for $72 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 $37 million and $53 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $31 million ($14 million collected in 2023 but not recognized as revenue until 2024) and $37 million, respectively. Hint. View this as two temporary differences-one reversing in 2024; one originating in 2024. d. 2024 expenses included a $20 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 $10 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 $6 million and no deferred tax liability. 4. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for 2025. Complete this question by entering your answers in the tabs below. Required Required 1 2 Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). ($ in millions) Current Year 2025 Future Taxable Amounts [2026] 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) 0.0 0 0.0 Enacted tax rate (%) Tax payable currently Deferred tax liability Deferred tax asset < Required 1 Required 2 > Required information [The following information applies to the questions displayed below.] Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues 2024 $ 918 2025 $ Expenses 774 Pretax accounting income (income statement) $ 144 1,010 830 $ 180 Taxable income (tax return) Tax rate: 25% $ 126 $ 214 a. Expenses each year include $36 million from a two-year casualty insurance policy purchased in 2024 for $72 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 $37 million and $53 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $31 million ($14 million collected in 2023 but not recognized as revenue until 2024) and $37 million, respectively. Hint. View this as two temporary differencesone reversing in 2024; one originating in 2024. d. 2024 expenses included a $20 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 $10 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 $6 million and no deferred tax liability. 4. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for 2025. Complete this question by entering your answers in the tabs below. Required Required 1 2 Prepare the necessary journal entry to record income taxes for 2025. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). View transaction list Journal entry worksheet < 1 Record 2025 income taxes. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Show less Record entry View general journal S Required information [The following information applies to the questions displayed below.] Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): 2024 2025 $ Revenues $ 918 Expenses 774 1,010 830 Pretax accounting income (income statement) $ 144 $ 180 Taxable income (tax return) Tax rate: 25% $ 126 $ 214 a. Expenses each year include $36 million from a two-year casualty insurance policy purchased in 2024 for $72 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 $37 million and $53 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $31 million ($14 million collected in 2023 but not recognized as revenue until 2024) and $37 million, respectively. Hint. View this as two temporary differences-one reversing in 2024; one originating in 2024. d. 2024 expenses included a $20 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 $10 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 $6 million and no deferred tax liability. 5. Compute the deferred tax amounts that should be reported on the 2025 balance sheet. Note: Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Deferred tax amounts ($ in millions) Classification Amount Required information [The following information applies to the questions displayed below.] Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues 2024 $ 918 2025 $ 1,010 Expenses 774 830 Pretax accounting income (income statement) $ 144 $ 180 Taxable income (tax return) $ 126 $ 214 Tax rate: 25% a. Expenses each year include $36 million from a two-year casualty insurance policy purchased in 2024 for $72 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 $37 million and $53 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $31 million ($14 million collected in 2023 but not recognized as revenue until 2024) and $37 million, respectively. Hint. View this as two temporary differencesone reversing in 2024; one originating in 2024. d. 2024 expenses included a $20 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 $10 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 $6 million and no deferred tax liability. 6. Suppose that during 2025, tax legislation was passed that will lower Arndt's effective tax rate to 15% beginning in 2026. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for 2025. Complete this question by entering your answers in the tabs below. Required Required 1 2 Suppose that during 2025, tax legislation was passed that will lower Arndt's effective tax rate to 15% beginning in 2026. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). ($ in millions) Current Year 2025 Future Taxable Amounts [2026] 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 (%) 0.0 Tax payable currently Deferred tax liability Deferred tax asset < Required 1 Required 2 > Show less Required information [The following information applies to the questions displayed below.] Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues 2024 $ 918 2025 $ Expenses 774 1,010 830 Pretax accounting income $ 144 (income statement) $ 180 Taxable income (tax return) Tax rate: 25% $ 126 $ 214 a. Expenses each year include $36 million from a two-year casualty insurance policy purchased in 2024 for $72 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 $37 million and $53 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $31 million ($14 million collected in 2023 but not recognized as revenue until 2024) and $37 million, respectively. Hint. View this as two temporary differences-one reversing in 2024; one originating in 2024. d. 2024 expenses included a $20 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 $10 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 $6 million and no deferred tax liability. 6. Suppose that during 2025, tax legislation was passed that will lower Arndt's effective tax rate to 15% beginning in 2026. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for 2025. Complete this question by entering your answers in the tabs below. Required Required 1 2 Prepare the necessary journal entry to record income taxes for 2025. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). View transaction list Journal entry worksheet < 1 Record 2025 income taxes. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry View general journal > Show less Required information [The following information applies to the questions displayed below.] Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): 2024 2025 Revenues $ 918 Expenses 774 $ 1,010 830 Pretax accounting income (income statement) $ 144 $ 180 Taxable income (tax return) Tax rate: 25% $ 126 $ 214 a. Expenses each year include $36 million from a two-year casualty insurance policy purchased in 2024 for $72 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 $37 million and $53 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $31 million ($14 million collected in 2023 but not recognized as revenue until 2024) and $37 million, respectively. Hint. View this as two temporary differences-one reversing in 2024; one originating in 2024. d. 2024 expenses included a $20 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 $10 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 $6 million and no deferred tax liability. 2. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for 2024. Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required 1 2 Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). ($ in millions) Current Year 2024 Future Taxable Amounts [2025] Future Deductible Amounts [2025] Pretax accounting income $ 144.0 Permanent difference: Life insurance premiums 2.0 Temporary differences: Casualty insurance expense Subscriptions-2023 (36.0 31.0X Subscriptions-2024 Unrealized loss Loss contingency Taxable income Enacted tax rate (%) Tax payable currently Deferred tax liability Deferred tax asset (20.0 X (10.0 $ 111.0 19.5X 53.0X 20 $ 53.0 5.0 < Required 1 Required 2 > 2. 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required 1 2 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 5.5). No 1 Transaction 1 General Journal Income tax expense Deferred tax asset Deferred tax liability Income tax payable < Required 1 Required 2 > Show less Debit 19.5X Credit 6.0 5.0X 19.5X Required information [The following information applies to the questions displayed below.] Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues Expenses 2024 $ 918 774 Pretax accounting income (income statement) $ 144 Taxable income (tax return) $ 126 2025 $ 1,010 830 $ 180 $ 214 Tax rate: 25% a. Expenses each year include $36 million from a two-year casualty insurance policy purchased in 2024 for $72 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 $37 million and $53 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $31 million ($14 million collected in 2023 but not recognized as revenue until 2024) and $37 million, respectively. Hint. View this as two temporary differencesone reversing in 2024; one originating in 2024. d. 2024 expenses included a $20 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 $10 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 $6 million and no deferred tax liability. 3. Compute the deferred tax amounts that should be reported on the 2024 balance sheet. Note: Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Deferred tax amounts ($ in millions) Classification Net current deferred tax liability Net current deferred tax liability Amount ! Required information [The following information applies to the questions displayed below.] Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): 2024 2025 $ Revenues $ 918 Expenses 774 1,010 830 Pretax accounting income $ 144 $ 180 (income statement) Taxable income (tax return) $ 126 $ 214 Tax rate: 25% a. Expenses each year include $36 million from a two-year casualty insurance policy purchased in 2024 for $72 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 $37 million and $53 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $31 million ($14 million collected in 2023 but not recognized as revenue until 2024) and $37 million, respectively. Hint. View this as two temporary differences-one reversing in 2024; one originating in 2024. d. 2024 expenses included a $20 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 $10 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 $6 million and no deferred tax liability. 4. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for 2025. Complete this question by entering your answers in the tabs below. Required Required 1 2 Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). ($ in millions) Current Year 2025 Future Taxable Amounts [2026] 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) 0.0 0 0.0 Enacted tax rate (%) Tax payable currently Deferred tax liability Deferred tax asset < Required 1 Required 2 > Required information [The following information applies to the questions displayed below.] Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues 2024 $ 918 2025 $ Expenses 774 Pretax accounting income (income statement) $ 144 1,010 830 $ 180 Taxable income (tax return) Tax rate: 25% $ 126 $ 214 a. Expenses each year include $36 million from a two-year casualty insurance policy purchased in 2024 for $72 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 $37 million and $53 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $31 million ($14 million collected in 2023 but not recognized as revenue until 2024) and $37 million, respectively. Hint. View this as two temporary differencesone reversing in 2024; one originating in 2024. d. 2024 expenses included a $20 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 $10 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 $6 million and no deferred tax liability. 4. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for 2025. Complete this question by entering your answers in the tabs below. Required Required 1 2 Prepare the necessary journal entry to record income taxes for 2025. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). View transaction list Journal entry worksheet < 1 Record 2025 income taxes. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Show less Record entry View general journal S Required information [The following information applies to the questions displayed below.] Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): 2024 2025 $ Revenues $ 918 Expenses 774 1,010 830 Pretax accounting income (income statement) $ 144 $ 180 Taxable income (tax return) Tax rate: 25% $ 126 $ 214 a. Expenses each year include $36 million from a two-year casualty insurance policy purchased in 2024 for $72 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 $37 million and $53 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $31 million ($14 million collected in 2023 but not recognized as revenue until 2024) and $37 million, respectively. Hint. View this as two temporary differences-one reversing in 2024; one originating in 2024. d. 2024 expenses included a $20 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 $10 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 $6 million and no deferred tax liability. 5. Compute the deferred tax amounts that should be reported on the 2025 balance sheet. Note: Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Deferred tax amounts ($ in millions) Classification Amount Required information [The following information applies to the questions displayed below.] Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues 2024 $ 918 2025 $ 1,010 Expenses 774 830 Pretax accounting income (income statement) $ 144 $ 180 Taxable income (tax return) $ 126 $ 214 Tax rate: 25% a. Expenses each year include $36 million from a two-year casualty insurance policy purchased in 2024 for $72 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 $37 million and $53 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $31 million ($14 million collected in 2023 but not recognized as revenue until 2024) and $37 million, respectively. Hint. View this as two temporary differencesone reversing in 2024; one originating in 2024. d. 2024 expenses included a $20 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 $10 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 $6 million and no deferred tax liability. 6. Suppose that during 2025, tax legislation was passed that will lower Arndt's effective tax rate to 15% beginning in 2026. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for 2025. Complete this question by entering your answers in the tabs below. Required Required 1 2 Suppose that during 2025, tax legislation was passed that will lower Arndt's effective tax rate to 15% beginning in 2026. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). ($ in millions) Current Year 2025 Future Taxable Amounts [2026] 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 (%) 0.0 Tax payable currently Deferred tax liability Deferred tax asset < Required 1 Required 2 > Show less Required information [The following information applies to the questions displayed below.] Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues 2024 $ 918 2025 $ Expenses 774 1,010 830 Pretax accounting income $ 144 (income statement) $ 180 Taxable income (tax return) Tax rate: 25% $ 126 $ 214 a. Expenses each year include $36 million from a two-year casualty insurance policy purchased in 2024 for $72 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 $37 million and $53 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $31 million ($14 million collected in 2023 but not recognized as revenue until 2024) and $37 million, respectively. Hint. View this as two temporary differences-one reversing in 2024; one originating in 2024. d. 2024 expenses included a $20 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 $10 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 $6 million and no deferred tax liability. 6. Suppose that during 2025, tax legislation was passed that will lower Arndt's effective tax rate to 15% beginning in 2026. 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. Required Required 1 2 Prepare the necessary journal entry to record income taxes for 2025. 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 5.5). View transaction list Journal entry worksheet < 1 Record 2025 income taxes. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry View general journal > Show less
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Why should global marketers be concerned by the various kinds of infringement on intellectual property?
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Describe the various positioning options available to global marketers.
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An ethical culture starts with higher management and a strong Human Resource Management Department. What types of programs should HRM put in place to promote ethical behavior and practices in the...
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Baxter, Inc., owns 90 percent of Wisconsin, Inc., and 20 percent of Cleveland Company. Wisconsin, in turn, holds 60 percent of Clevelands outstanding stock. No excess amortization resulted from these...
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On January 1, 2024, Madison Products issued $40 million of 6%, 10-year convertible bonds at a net price of $40.8 million. Madison recently issued similar, but nonconvertible, bonds at 99 (that is,...
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The Thompson Corporation, a manufacturer of steel products, began operations on October 1, 2022. The accounting department of Thompson has started the fixed-asset and depreciation schedule presented...
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Examine the segment disclosures of Abbott Laboratories reported in Appendix 3 and answer the following questions. 1. Does Abbott Laboratories define its operating segments by business or geography?...
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A source with a strength of \(q=3 \pi \mathrm{m}^{2} / \mathrm{s}\) and a sink with a strength of \(q=\pi \mathrm{m}^{2} / \mathrm{s}\) are located on the \(x\) axis at \(x=-1 \mathrm{~m}\) and \(x=1...
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The velocity distribution in a two-dimensional, steady, inviscid flow field in the \(x y\) plane is \(\vec{V}=(A x+B) \hat{i}+(C-A y) \hat{j}\), where \(A=3 \mathrm{~s}^{-1}, B=6 \mathrm{~m} /...
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Consider the flow past a circular cylinder, of radius \(a\), used in Example 6.11. Show that \(V_{r}=0\) along the lines \((r, \theta)=(r, \pm \pi / 2)\). Plot \(V_{\theta} / U\) versus radius for...
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