The information that follows pertains to Richards Refrigeration, Inc.:a. At December 31, 2021, temporary differences existed between the financial statement book values and the tax bases of the following ($ in millions):

b. No temporary differences existed at the beginning of 2021.c. Pretax accounting income was $200 million and taxable income was $145 million for the year ended December 31, 2021. The tax rate is 25%.

Required:1. Determine the amounts necessary to record income taxes for 2021, and prepare the appropriate journal entry.2. What is the 2021 net income?

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Future Taxable (Deductible) Amount Book Тах Value Basis $ 30 Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability–loss contingency $120 $90 50 50 (25) 25