Required Information Problem 16-8 (Algo) Multiple differences; taxable income given; two years; balance sheet classification; change in tax rate (L016-1, 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): Revenues Expenses Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 25% 2021 $ 938 794 $ 144 $ 106 2022 $1,030 850 $ 180 $ 214 a. Expenses each year include $56 million from a two-year casualty insurance policy purchased in 2021 for $112 million. The cost is tax deductible in 2021. 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 2021 and 2022 were $57 million and $73 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $51 million ($36 million collected in 2020 but not recognized as revenue until 2021) and $57 million, respectively. Hint View this as two temporary differences-one reversing in 2021; one originating in 2021 d. 2021 expenses included a $40 million unrealized loss from reducing Investments (classified as trading securities) to fair value. The investments were sold and the loss realized in 2022. e. During 2020, accounting income included an estimated loss of $30 million from having accrued a loss contingency. The loss was paid in 2021, at which time it is tax deductible. f. At January 1, 2021, Arndt had a deferred tax asset of $4 million and no deferred tax liability. Problem 16-8 Part 5 5. Compute the deferred tax amounts that should be reported on the 2022 balance sheet. (Enter your answer in millions (1.e., 10,000,000 should be entered as 10).) Deferred tax amounts ($ in millions) Classification Amount Net noncurrent deferred tax asset