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 $2025.$

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

Required $2$

Prepare the necessary journal entry to record income taxes for $2025.$

Note: 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 $5\mathrm{.}5).$

Journal entry worksheet

Record $2025$ income taxes.

Note: Enter debits before credits.Required Information

$[$The following Information applles to the questions displayed below.$]$

Arndt, Incorporated reported the following for $2024$ and $2025($$ in millions$)$:

Tax rate: $25\%$

a$.$ Expenses each year Include $$40$ million from a two$-$year casualty Insurance policy purchased in $2024$ for $$80$

million. The cost is tax deductible in $2024.$

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 $2024$ and $2025$

were $$41$ million and $$57$ million, respectively. Subscriptions included in $2024$ and $2025$ financlal reporting revenues

were $$35$ million $($ $$18$ million collected in $2023$ but not recognized as revenue untll $2024)$ and $$41$ million,

respectively. Hint View this as two temporary differences$-$one reversing in $2024$; one originating in $2024.$

d$.2024$ expenses included a $$24$ million unrealized loss from reducing investments $($classified as trading securitles$)$ to

falr value. The investments were sold and the loss realized in $2025.$

e$.$ During $2023,$ accounting income included an estimated loss of $$14$ million from having accrued a loss contingency.

The loss was paid in $2024,$ at which time it is tax deductible.

f$.$ At January $1,2024,$ Arndt had a deferred tax asset of $$8$ million and no deferred tax llability.

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 $2025.$

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

Required $1$

Prepare a schedule that reconciles the difference between pretax accounting income and taxable income.

Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to $1$ decimal

place $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$