Corning-Howell reported taxable income in 2021 of $120 million. At December 31, 2021, the reported amount of some assets and liabilities in the financial statements differed from their tax bases as indicated below:

The total deferred tax asset and deferred tax liability amounts at January 1, 2021, were $156.25 million and $25 million, respectively. The enacted tax rate is 25% each year.

Required:1. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2021.2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2021.3. Determine the income tax payable currently for the year ended December 31, 2021.4. Prepare the journal entry to record income taxes for 2021.

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Carrying Amount Tax Basis Assets Current $ 10 million $ 12 million Net accounts receivable Prepaid insurance Prepaid advertising 20 million 6 million Noncurrent Investments in equity securities (fair value)* Buildings and equipment (net) 4 million 360 million 280 million Liabilities Current Deferred subscription revenue 14 million Long-term Liability-compensated future absences 594 million