Check my work : Fores Construction Company reported a pretax operating loss of $160 million for financial reporting purposes in 2018. Contributing to the loss were (a) a penalty of $15 million assessed by the Environmental Protection Agency for violation of a federal law and paid in 2018 and (b) an estimated loss of $20 million from accruing a loss contingency. The loss will be tax deductible when paid in 2019. The enacted tax rate is 40%. There were no temporary differences at the beginning of the year and none originating in 2018 other than those described above. Taxable income in Fores's two previous years of operation was as follows: 2016 2017 $ 80 million 30 million Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operating loss in 2018. Fores elects the carryback option 2. What is the net operating loss reported in 2018 income statement? 3. Prepare the journal entry to record income taxes in 2019 assuming pretax accounting income is $75 million. No additional temporary differences originate in 2019. Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3 Prenare.thA.MN.rnal.Antrw.to reon nize.the income tax. henen the net (neratinn nss in 2018 .Fnres alerts thA.rarnehack .. Prev 13 of 15 Next>