AirParts Corporation reported a net operating loss of 25 million for financial

Airparts corporation reported a net operating loss of

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4.AirParts Corporation reported a net operating loss of $25 million forfinancial reporting and tax purposes. Taxable income last year and theprevious year, respectively, was $20 million and $15 million. Theenacted tax rate each year is 40%.Prepare the journal entry to recognize the income tax benefit of thenet operating loss. AirParts elects the carryback option. (If no entry isrequired for aparticularevent, select "No journal entry required"in the first account field. Enter your answers in whole dollars.)
5.Sherrod, Inc., reported pretax accounting income of $76 million for 2016. 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 2016 exceeded that reported for tax purposes by $3 million. The installment receivable account at year-end had a balance of $4 million (representing portions of 2015 and 2016 installment sales), expected to be collected equally in 2017 and 2018.b. Sherrod was assessed a penalty of $2 million by the EnvironmentalProtection Agency for violation of a federal law in 2016. The fine is c. Sherrod rents its operating facilities but owns one asset acquired in2015 at a cost of $80 million. Depreciation is reported by the

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