Exercise 16-22 (Algo) Multiple temporary differences; record income taxes [LO16-2, 16-3]

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

1. At December 31, 2021, temporary differences existed between the financial statement book values and the tax bases of the following:

	($ in millions)
	Book Value			Tax Basis			Future Taxable (Deductible) Amount
Buildings and equipment (net of accumulated depreciation)	$	128		$	94			$	34
Prepaid insurance		54			0				54
Liabilityloss contingency		29			0				(29	)

2. No temporary differences existed at the beginning of 2021.
3. Pretax accounting income was $204 million and taxable income was $145 million for the year ended December 31, 2021. The tax rate is 25%.

Required: 1. Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2021. 2. What is the 2021 net income?