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In: Accounting

The information that follows pertains to Richards Refrigeration, Inc.: At December 31, 2018, temporary differences existed...

The information that follows pertains to Richards Refrigeration, Inc.:

  1. At December 31, 2018, temporary differences existed between the financial statement carrying amounts and the tax bases of the following:
($ in millions)
Carrying
Amount
Tax
Basis
Future Taxable
(Deductible)
Amount
Buildings and equipment (net of accumulated depreciation) $ 142 $ 101 $ 41
Prepaid insurance 61 0 61
Liability—loss contingency 36 0 (36 )
  1. No temporary differences existed at the beginning of 2018.
  2. Pretax accounting income was $211 million and taxable income was $145 million for the year ended December 31, 2018. The tax rate is 40%.

Required:
1. Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2018
2. What is the 2018 net income?

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