PLEASE HELP

Problem 16-7 (Algo) Multiple differences; calculate taxable Income; balance sheet classification; financlal statement effects [LO16-2, 16-3, 16-5, 16-8] Sherrod, Incorporated, reported pretax accounting income of $88million for 2024 . The following information reiates to differences between pretax accounting income and taxable lncome: B. Income from installment sales of properties Included in pretax accounting income in 2024 exceeded that reported for tax purposes by $7 mlilion. The instaliment recelvable 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 penaity of $3 million by the Environmental Protection Agency for violation of a federal law in 2024 . The fine is to be pald in equal amounts in 2024 and 2025. c. Sherrod rents its operating faclities but owns one asset acquired in 2023 at a cost of $96 million. Depreclation is reported by the stralght-line method, assuming a four-year useful life. On the tax retum, deductions for depreclation will be more than stralghtline depreclation the first two years but less than straight-lline depreclation the next two years (\$ in millions): d. For tax purposes, warranty expense is deducted when costs are pald. The balance of the warranty llablily was $2 million 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 anticlpated to be pald in 2025. At December 31, 2024, the warranty llability is $3 million (after. odjusting entries). e. In 2024, Sherrod accrued an expense and related Eability for estimated paid future absences of $13 mililon relating to the compony's new paid vacation program. Future compensation will be deductible on the tax return when actually paid during the next two years (\$7 milion in 2025; $6 million in 2026) C During 2023, occounting income included an estimated loss of $2 million from having acerued a loss contingency. The loss is pald in 2024, at which time it is tax deductible. Balances in the deferred tax asset and deferred tax lability accounts at Januay 1,2024, were $1.00 miltion and $2.00 million. respectively, The enacted tox rote is 25% each year. Required: 1. Determine the amounts necessory 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 classiffed and reported in the 2024 balance sheet. Determine the amounts necessary to record income taxes for 2024, and prepare the appropriate joumal entry. Note: If no entry is required for a transaction/event, select "No joumal 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 5.50). 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 (1.e., 5,500,000 should be entered as 5.50)