Etg for ITX - Graded HW 0 Help Save Arndt, Inc. reported the following for 2021 and 2022 ($ in millions Revenues Expenses Pretax accounting income (income statement) Taxable income tax return) Tax rate: 256 2021 $ 946 802 $ 144 $ 98 2022 $1,038 B5B $ 180 $ 214 a. Expenses each year include $64 million from a two-year casualty Insurance policy purchased in 2021 for $128 million. The cost is tax deductible in 2021. 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 2021 and 2022 were $65 million and $81 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $59 million ($44 million collected in 2020 but not recognized as revenue until 2021) and $65 million, respectively. Hinc View this as two temporary differences--one reversing in 2021: one originating in 2021. d. 2021 expenses included a $48 million unrealized loss from reducing Investments (classified as trading securities to value. The investments were sold and the loss realized in 2022. e. During 2020, accounting income included an estimated loss of $38 million from having accrued a loss contingency The loss was paid in 2021, at which time it is tax deductible. f. At January 1, 2021, Arndt had a deferred tax asset of $4 million and no deferred tax liability 4. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the sche prepare the necessary journal entry to record income taxes for 2022. 6 Prex 7 8 of 9 Next >