Sherod, Incorporated, reported pretax accounting income of 589 milion for 2024 . The following information relates to differences between pretax accouriting income and tavahle inceme a income fom instaliment sales of propermes included in pretax accouning income in 2024 exceded that reported for tax of 2023 and 2024 instaliment sales. expected to be coliected equaly in 2025 and 2026 fine is to be pald in equal amourts in 2024 and 2025 . c. Sherrod rents its operating tacillies but ownt one atset acquired in 2023 at a cost of $96 million. Depteciation is reported by the lire depreciation the first two years buit less than straight line depreciation the next two years (\$ in milions) d. For tas purposes, warrarty experse is deducted when costs are paid the balance of the warranty liabitity was $2 milion of the end of 2023 . Wartanty ecpense of $4 mifton is recognured in the income statement in 2024.53millian of cost is paid in 2024 . adinting eritim) compary/s new pad vacation progatm. Future compensation wil be deductible on the tax return when actualy paid during the next two years [57 mallion in 2025, 56 milion in 2026 ) t Durng 2022, accounting incoine included an estimated loss of 52 mison from having accrued a loss contingeney The iocs is mpertively The macted tax iate is 25x, esch year. Required: 1. Deteswune the amounts necessary to recond income faxis for 2024 and prepare the appropriate joumal entry 2. What is the 2024 net income? 3 Show how ary deferred tax amourts should be classify and reported in the 2024 balance sheet Complete this question by entering your answers in the tabs below. Sherrod, incorporated, reported pretax accounting income of 588 million for 2024 . The following information relates to differences between pretax accounting income and taxable income a Income from installment sales of properties included in prefax accounting income in 2024 exceeded that reported for tax purposes by $7 million. The installment receivable account at year-end 2024 had a balance of $8 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 $3 mition by the Ervionmentat Protection Agency for violation of a federal taw in 2024 . The fine is to be paid in equal amounts in 2024 and 2025 . c. Sherrod rents its operating facilties but owns one asset acquired in 2023 at a cost of $96 million. Depreciation is reported by the straight-Ane method, assuming a four year useful life On the tax return, deductions for depreciation will be more than straightline depreciation the first two years but less than straight tine depreciation the next two years (s in miltions) d. For tax purposes, wananty expense is deducted when costs are paid The balance of the warranty liability was $2 milion at the end of 2023 . Warranty expense of $4 million is recognized in the income statement in 2024.$3 million of cost is paid in 2024 . and another $3 million of costs are anticipated to be paid in 2025 . At December 31,2024 , the warranty llability is $3 miflion (after adjusting entries). e in 2024 , Sherrod accrued an expense and related liability for estimated paid future absences of $13 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 ( $7 million in 2025; $6 million in 2026) f During 2023, accounting income included an estimated loss of $2 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 $100 million and $2.00 million, respectlvely. The enacted tax rate is 25% each year Required: 1. Determine the amounts necessary to record income taxes for 2024 , and prepare the appropriate journal entry 2 What is the 2024 net income? 3. Show how any deferred tax amounts should be classified and reported in the 2024 balance sheet. Complete this question by entering your answers in the tabs below. What is the 2024 net income? Sherrod, Incorporated, reported pretax accourting income of $89 million for 2024 . The following information relates to idiflerences betweth pretax accounting income and takable income. purposes by 57 million The invaliment receivable account at year end 2024 had a batance of 58 mallion frepresenting portions of 2023 and 2024 instwhent sales, expected to be colected equally in 2025 and 2020 . b. Sherod was assessed a pecatty of 53 mittion by the Emironmentar Protection Agency for volation of a federat law in 2024 . The tine is to be puid in equal amoursts in 2024 and 2025 . c Shenod rents its operating taciloes but ouns one asset accuend in 2023 at a cost of 596 inilion. Depreciation is reported by the stracht fire method, assuming a fousyedr usefd tife. On the lax requrn, dedoctons for depreciation will be mote than straight. d. For tax puposes, warrarcy experse is deducted when costs are paid. The balance of the warranty labdity was 52 millon at the end of 2022 Waranty espense of 54 million is recogniced in the income statement in 2024.53 millon of cost is paid in 2024 . ndpating enties. poid in 2024, ant whach trime it is tar deductible. Requived 2. What in the 2024 net incrome? Complete this quastion by entering yoser anwwers in the tabs betow