Problem $16-7($Algo$)$ Multiple differences; calculate taxable income; balance sheet classification; financial statement effects $[$LO$16-2,16-3,16-5,16-8]$

Sherrod, Incorporated, reported pretax accounting income of $$80$ million for $2024.$ The following information relates to differences between pretax accounting income and taxable income:

Income from installment sales of properties included in pretax accounting income in $2024$ exceeded that reported for tax purposes by $$5$ million. The installment receivable account at year$-$end $2024$ had a balance of $$6$ million $($representing Problem $16-9($Algo$)$ Determine deferred tax assets and liabilities from book$-$tax differences; financial statement effects $[$LO$16-2,16-3]$

Corning$-$Howell reported taxable income in $2024$ of $$172$ million. At December $31,2024,$ the reported amount of some assets and liabilities in the financial statements differed from their tax bases as indicated below:

$$Carrying AmountTax BasisAssets$$Current$$Net accounts receivable$ $60$million$ $64$millionPrepaid insurance$72$million$0$Prepaid advertising$56$million$0$Noncurrent$$Investments in equity securities $($fair value$)*$Footnote asterisk$56$million$0$Buildings and equipment $($net$)412$million$332$millionLiabilities$$Current$$Deferred subscription revenue$64$million$0$Long$-$term$$Liability$$compensated future absences$646$million$0$

$*$Footnote asteriskGains and losses taxable when investments are sold.

The total deferred tax asset and deferred tax liability amounts at January $1,2024,$ were $$182\mathrm{.}25$ million and $$25$ million, respectively. The enacted tax rate is $25\%$ each year.

Required:

Determine the total deferred tax asset and deferred tax liability amounts at December $31,2024.$

Determine the increase $($decrease$)$ in the deferred tax asset and deferred tax liability accounts at December $31,2024.$

Determine the income tax payable currently for the year ended December $31,2024.$

Prepare the journal entry to record income taxes for $2024.$ Problem $16-9($Algo$)$ Determine deferred tax assets and liabilities from book$-$tax differences; financial statement effects $[$LO$16-2,16-3]$

Corning$-$Howell reported taxable income in $2024$ of $\backslash (\backslash$$ $172\backslash )$ million. At December $31,2024,$ the reported amount of some assets and liabilities in the financial statements differed from their tax bases as indicated below:

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|\}$

$\backslash$hline & $\backslash$multirow$[$t$]\{2\}\{*\}\{$Carrying Amount$\}$ & Tax Basis $\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Assets$\}$ & $\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Current$\}\backslash \backslash$

$\backslash$hline Net accounts receivable & $\backslash$$ $60$ million & $\backslash$$ $64$ million $\backslash \backslash$

$\backslash$hline Prepaid insurance & $72$ million & $0\backslash \backslash$

$\backslash$hline Prepaid advertising & $56$ million & $0\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Noncurrent$\}\backslash \backslash$

$\backslash$hline Investments in equity securities $($fair value$)*$ & $56$ million & $0\backslash \backslash$

$\backslash$hline Buildings and equipment $($net$)$ & $412$ million & $332$ million $\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Liabilities$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Current$\}\backslash \backslash$

$\backslash$hline Deferred subscription revenue & $64$ million & $0\backslash \backslash$

$\backslash$hline Long$-$term & & $\backslash \backslash$

$\backslash$hline Liability$-$compensated future absences & $646$ million & $0\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$*$Gains and losses taxable when investments are sold.

The total deferred tax asset and deferred tax liability amounts at January $1,2024,$ were $\backslash (\backslash$$ $182\mathrm{.}25\backslash )$ million and $\backslash (\backslash$$ $25\backslash )$ million, respectively. The enacted tax rate is $\backslash (25\backslash \%\backslash )$ each year.

Required:

$1.$ Determine the total deferred tax asset and deferred tax liability amounts at December $31,2024.$

$2.$ Determine the increase $($decrease$)$ in the deferred tax asset and deferred tax liability accounts at December $31,2024.$

$3.$ Determine the income tax payable currently for the year ended December $31,2024.$

$4.$ Prepare the journal entry to record income taxes for $2024.$