Problem 16-9 (Algo) Determine deferred tax assets and liabilities from book-tax differences; financial statement effects [LO16-2, 16-3]

Corning-Howell reported taxable income in 2024 of $188 million. At December 31, 2024, the reported amount of some assets and liabilities in the financial statements differed from their tax bases as indicated below:

	Carrying Amount	Tax Basis
Assets
Current
Net accounts receivable	$ 76	million	$ 80	million
Prepaid insurance	88	million	0
Prepaid advertising	72	million	0
Noncurrent
Investments in equity securities (fair value)*Footnote asterisk	72	million	0
Buildings and equipment (net)	428	million	348	million
Liabilities
Current
Deferred subscription revenue	80	million	0
Long-term
Liabilitycompensated future absences	662	million	0

^{*Footnote asterisk}Gains and losses taxable when investments are sold.

The total deferred tax asset and deferred tax liability amounts at January 1, 2024, were $190.25 million and $25 million, respectively. The enacted tax rate is 25% each year.

Required:

1. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2024.
2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2024.
3. Determine the income tax payable currently for the year ended December 31, 2024.
4. Prepare the journal entry to record income taxes for 2024.

Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2024. Note: Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). Decreases should be indicated with a minus sign. Prepare the journal entry to record income taxes for 2024. Vote: 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 2 decimal places (i.e., 5,500,000 should be entered as 5.50). Journal entry worksheet Note: Enter debits before credits. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2024. Note: Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.5 Complete this question by entering your answers in the tabs below. Determine the income tax payable currently for the year ended December 31, 2024. Note: Enter your answer in millions (i.e., 10,000,000 should be entered as 10 )