Please help with problem 16-8 part 4

Required information Problem 16-8 (Algo) Multiple differences; taxable income given; two years; balance sheet classification; change in tax rate [LO16-1, 16-2, 16-3, 16-5, 16-6, 16-8] [The following information applies to the questions displayed below.] Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): 2021 2022 Revenues $ 932 $ 1,024 Expenses 788 844 Pretax accounting income (income statement) $ 144 $ 180 Taxable income (tax return) $ 112 $ 214 Tax rate: 25% Expenses each year include $50 million from a two-year casualty insurance policy purchased in 2021 for $100 million. The cost is tax deductible in 2021. Expenses include $2 million insurance premiums each year for life insurance on key executives. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2021 and 2022 were $51 million and $67 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $45 million ($30 million collected in 2020 but not recognized as revenue until 2021) and $51 million, respectively. Hint: View this as two temporary differencesone reversing in 2021; one originating in 2021. 2021 expenses included a $34 million unrealized loss from reducing investments (classified as trading securities) to fair value. The investments were sold and the loss realized in 2022. During 2020, accounting income included an estimated loss of $24 million from having accrued a loss contingency. The loss was paid in 2021, at which time it is tax deductible. At January 1, 2021, Arndt had a deferred tax asset of $4 million and no deferred tax liability.

Problem 16-8 Part 4

4. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for 2022.

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2

Prepare the necessary journal entry to record income taxes for 2022. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

No	Transaction	General Journal	Debit	Credit
1	1	Income tax expense - selected answer correct	?
		Deferred tax liability - selected answer correct	12.5selected answer correct
		Deferred tax asset - selected answer correct		?
		Income tax payable - selected answer correct		53.5selected answer correct