Exercise 16-19 Multiple temporary differences; record income taxes [LO16-6]

The information that follows pertains to Richards Refrigeration, Inc.:

a.	At December 31, 2016, temporary differences existed between the financial statement carrying amounts and the tax bases of the following:

	($ in millions)
	Carrying Amount		Tax Basis		Future Taxable (Deductible) Amount
Buildings and equipment (net of accumulated depreciation)	$	152	$	106	$	46
Prepaid insurance		66		0		66
Liabilityloss contingency		41		0		(41)

b.	No temporary differences existed at the beginning of 2016.
c.	Pretax accounting income was $216 million and taxable income was $145 million for the year ended December 31, 2016. The tax rate is 40%.

Required:

1.

Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Negative amounts should be entered 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)) 2. Record 2016 income taxes. 3. What is the 2016 net income? (Enter your answer in millions and round your answer to 1 decimal places.)