Problem 16-6 (Algo) Multiple differences; temporary difference yet to originate; tax rates change [LO16- 2, 16-3, 16-6] You are the new accounting manager at the Barry Transport Company. Your CFO has asked you to provide input on the company's income tax position based on the following: 1. Pretax accounting income was $62 million and taxable income was $10 million for the year ended December 31, 2024. 2. The difference was due to three items: a. Tax depreciation exceeds book depreciation by $50 million in 2024 for the business complex acquired that year. This amount is scheduled to be $70 million in 2025 and to reverse as ($60 million) and ($60 million) in 2026 and 2027, respectively. b. Insurance of $6 million was paid in 2024 for 2025 coverage. c. A $4 million loss contingency was accrued in 2024, to be paid in 2026. 3. No temporary differences existed at the beginning of 2024. 4. The tax rate is 25%. Required: 1. Determine the amounts necessary to record income taxes for 2024, and prepare the appropriate journal entry. 2. Assume the enacted federal income tax law specifies that the tax rate will change from 25% to 20% in 2026. When scheduling the reversal of the depreciation difference, you were uncertain as to how to deal with the fact that the difference will continue to originate in 2025 before reversing the next two years. Upon consulting PricewaterhouseCoopers' Comperio database, you found: