Sherrod, Inc. reported prelax accounting income of $66 million for 2021 The following information relates to differences between pretax accounting income and taxable income a Income from installment sales of properties included in pretax accounting income in 2021 exceeded that reported for tax purposes by $4 trillion. The installment receivable account at year end 2021 hod balance of 56 milion representing portions of 2020 and 2021 installment sales), expected to be collected equally in 2022 and 2023 b. Sherrod was assessed a penalty of $2 million by the Environmental Protection Agency for Wation of a federal law in 2020. The fine is to be paid in equal amounts in 2021 and 2022 c. Sherrod rents its operating facilities but owns one ascot acquired in 2020 at a cost of 2 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 min) Statent Tax Return bifference 513 517 $ 2 23 3032 13 9 5.53 $52 5 3 n. For tax purposes warranty expense is deducted when costs are incurred. The balance of the warranty abisty was 52 in on the end of 2020. Warranty expense of $4 million is recognized in the income statement in 2021 53 million of cost is incurred in 2021 and another 53 million of cost anticipated in 2022. At December 31, 2021.the warranty liability is $3 millioner og entries In 2021. Sherrod accrued an expense and reited liability for estimated paid future absences of $15 milion relating to the company's new paid vacation program Future compensation will be deductible on the tax return when actually paid dunno me next two years 158 million in 2022 57 million in 2022 During 2020. accounting income included an estimated loss of S6 mon trom having accrued a los contingency The loss paid in 2021, at which time it is tax deductible Balances in the deferred tax asset and deferred tax liability accounts at January 202t were $200 million and $150 million respectively. The enacted tax rate is 25 each yeat Required: 1. Determine the amounts necessary to record income taxes for 2021, and prepare the appropriate joumal entry 2. What is the 2021 net income? 2. Show how any deferred tax amounts should be classified and reported in the 2021 balance sheet