16-11 toperating scarpyback carryforward tiple rences 16-3, LO 16-5. 16-7 2. Show the lower portion of the 2021 income statement that reports loss. 3. Prepare the journal entry to record income taxes in 2022 assuming pretax accounting income is $1 No additional temporary differences originate in 2022 (Note: this problem is a variation of P 16-10, modified to allow a net operating loss carryback.) Fore Farms were (a) a penalty of $5 million assessed by the Environmental Protection Agency for violation of a federal law reported a pretax operating loss of $137 million for financial reporting purposes in 2021. Contributing to the loss and paid in 2021 and (b) an estimated loss of $12 million from accruing a lass contingency. The loss will be tax deductible when paid in 2022. The enacted tax rate is 25%. There were no temporary differences at the beginning of the year and none was as follows: 2019 2020 $80 million $32 million Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operating loss in 2021. Assume Fore will carry back its NOL to prior years. 2. Show the lower portion of the 2021 income statement that reports the income tax benefit of the net operating loss. 3. Prepare the journal entry to record income taxes in 2022 assuming pretax accounting income is $160 million. No additional temporary differences originate in 2022 This fps Transportation's December 31 2012 balance sheet included 16-11 toperating scarpyback carryforward tiple rences 16-3, LO 16-5. 16-7 2. Show the lower portion of the 2021 income statement that reports loss. 3. Prepare the journal entry to record income taxes in 2022 assuming pretax accounting income is $1 No additional temporary differences originate in 2022 (Note: this problem is a variation of P 16-10, modified to allow a net operating loss carryback.) Fore Farms were (a) a penalty of $5 million assessed by the Environmental Protection Agency for violation of a federal law reported a pretax operating loss of $137 million for financial reporting purposes in 2021. Contributing to the loss and paid in 2021 and (b) an estimated loss of $12 million from accruing a lass contingency. The loss will be tax deductible when paid in 2022. The enacted tax rate is 25%. There were no temporary differences at the beginning of the year and none was as follows: 2019 2020 $80 million $32 million Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operating loss in 2021. Assume Fore will carry back its NOL to prior years. 2. Show the lower portion of the 2021 income statement that reports the income tax benefit of the net operating loss. 3. Prepare the journal entry to record income taxes in 2022 assuming pretax accounting income is $160 million. No additional temporary differences originate in 2022 This fps Transportation's December 31 2012 balance sheet included