Sherrod, Incorporated, reported pretax accounting income of $$94$ 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$.,5,500,000$ should be entered as $5\mathrm{.}50).$ 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 $5\mathrm{.}50).$ 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 $5\mathrm{.}50).$

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 $$4$ million. The installment receivable account at year$-$end $2024$ had a balance of $$6$ 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 $$4$ 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 $$108$ 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 $$1$ million at the

end of $2023.$ Warranty expense of $$5$ million is recognized in the income statement in $2024.$ $$3$ million of cost is paid in $2024,$

and another $$3$ million of costs are anticipated to be paid in $2025.$ At December $31,2024,$ the warranty liability is $$3$ million $($after

adjusting entries$).$

e$.$ In $2024,$ Sherrod accrued an expense and related liability for estimated paid future absences of $$12$ 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 $($ $$10$ million in $2025$ ; $$2$ 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 $$0\mathrm{.}75$ million and $$2\mathrm{.}50$ million,

respectively. The enacted tax rate is $25\%$ 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.