What is the 2024 net income? Note: Enter your answer in millions rounded to 2 decimal places (1.e., 5,500,000 should be entered as 5.50). Sherrod, Incorporated, reported pretax accounting income of $94 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 pretax accounting income in 2024 exceeded that reported for tax purposes by $4 million. The installment recelvable 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 $0.75 million and $2.50 million, respectively. The enacted tax rate is 25% each year. 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 ( (1.e.,5,500,000 should be entered as 5.50 ) 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 fleid. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50 ). Journal entry worksheet
