Arnold Industries has pretax accounting income of $62 million for the year ended December 31, 2018. The tax rate is 40%. The only difference between accounting income and taxable income relates to an operating lease in which Arnold is the lessee. The inception of the lease was December 28, 2018. An $12 million advance rent payment at the inception of the lease is tax-deductible in 2018 but, for financial reporting purposes, represents prepaid rent expense to be recognized equally over the four-year lease term. Required:1. Complete the following table given below and prepare the appropriate journal entry to record Arnold’s income taxes for 2018. ($ in millions) Tax Rate % Tax $Recorded as:Pretax accounting income$40.0 Rent costs reversing in: 2019 x = 2020 x = 2021 x = 2022 x = Total deferred tax amount Income taxable in current year2. Prepare the appropriate journal entry to record Arnold’s income taxes for 2019. Pretax accounting income was $49 million for the year ended December 31, 2019.3. Assume a new tax law is enacted in 2019 that causes the tax rate to change from 40% to 30% beginning in 2020. Complete the following table given below and prepare the appropriate journal entry to record Arnold’s income taxes for 2019.

Required 1

                                              ($'millions)  Tax Rate(%) Tax($)  Recorded as :

Pretax Accounting Income     $62

Rent costs reversing in:      

2019                                          $3           *     40%=       $1.2  

2020                                         $3           *      40%=       $1.2  

2021                                          $3           *      40%=       $1.2  

2022                                         $3           *       40%=      $1.2  

Tax Deferred Tax Amount                                              $4.8 (Deferred tax liability)

Income Taxable in current year $ 50     *        40%=      $20 (Income tax payable) ($62 -($3 *4 Years))

Year       General Journal                             DebitCredit

2018      Income Tax Expense (20+4.8)     $24.8  

                   Deferred Tax Liability                                 $4.8

                   Income tax payable                                    $20

              (To record Arnold income taxes for 2018)

Required 2  

Year        General Journal                              Debit        Credit

2019        Income Tax Expense ($49*40%)   $19.6

                       Deferred tax liability ($3*40%)                 $1.2  

                        Income tax payable (19.6+1.2)                 $20.8

                (To record Arnold income taxes for 2019)

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.

correct, but each time you dont pay the price of the penalty can increase.