(Solved): Sherrod, Incorporated, reported pretax accounting income of $94 million for 2024 . The following in ...

Sherrod, Incorporated, reported pretax accounting income of

million for 2024 . The following information relates to differences Determine the amounts necessary to record income taxes for 2024 , and prepare the appropriate journal entry. Note: 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.,

should be entered as 5.50). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the 2024 net income? Note: Enter your answer in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). \table[[Net income for 2024,$,62.75\times ,million]] Show how any deferred tax amounts should be classified and reported in the 2024 balance sheet. Note: Enter your answer in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). between pretax accounting income and taxable income: a. Income from installment sales of properties included in pretax accounting income in 2024 exceeded that reported for tax purposes by

million. The installment receivable account at year-end 2024 had a balance of

million (representing portions of 2023 and 2024 installment sales), expected to be collected equally in 2025 and 2026. b. Sherrod was assessed a penalty of

million by the Environmental Protection Agency for violation of a federal law in 2024 . The fine is to be paid in equal amounts in 2024 and 2025. c. Sherrod rents its operating facilities but owns one asset acquired in 2023 at a cost of

million. Depreciation is reported by the straight-line method, assuming a four-year useful life. On the tax return, deductions for depreciation will be more than straight-line depreciation the first two years but less than straight-line depreciation the next two years (

in millions): d. For tax purposes, warranty expense is deducted when costs are paid. The balance of the warranty liability was

million at the end of 2023 . Warranty expense of

million is recognized in the income statement in 2024 .

million of cost is paid in 2024 , and another

million of costs are anticipated to be paid in 2025 . At December 31,2024 , the warranty liability is

million (after adjusting entries). e. In 2024, Sherrod accrued an expense and related liability for estimated paid future absences of

million relating to the company's new paid vacation program. Future compensation will be deductible on the tax return when actually paid during the next two years (

million in 2025 ;

million in 2026 ). f. During 2023, accounting income included an estimated loss of

million from having accrued a loss contingency. The loss is paid in 2024 , at which time it is tax deductible. Balances in the deferred tax asset and deferred tax liability accounts at January 1,2024 , were

million and

million, respectively. The enacted tax rate is

each year. Required: Determine the amounts necessary to record income taxes for 2024 , and prepare the appropriate journal entry. What is the 2024 net income? Show how any deferred tax amounts should be classified and reported in the 2024 balance sheet.