The information that follows pertains to Richards Refrigeration, Inc.: a. At December 31, 2024, 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 2024.
c. Pretax accounting income was $200 million and taxable income was $145 million for the year ended December 31, 2024. The tax rate is 25%.

Required:
1. Determine the amounts necessary to record income taxes for 2024, and prepare the appropriate journal entry.
2. What is the 2024 net income?

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Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss contingency Book Value $120 50 25 Tax Basis $90 0 0 Future Taxable (Deductible) Amount $ 30 50 (25)