Fones Construction Company reported a pretax operating loss of $150 million for financial reporting purposes in 2015 Contributing to the loss ware(a) a penalty of $5 millon assessed by the Environmental Protection Agency for violation of a federal law and paid in 2016 and (b) an estimated loss of 10 million from accruing a loss contingency. The loss will be tax deductble when paid in 2017. The enacted tax rate is 40%. There were not temporary differences at the beginning of the year and none originating in 2016 other than those described above. Taxable income in Fones's two previous years of operation was as follows Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operating loss in 2016. Fones elects the carryback option. (If no entry required for a "No Journal entry required" in the first account field. Enter your answers in millons (i.e., 10,000,000 should be entered as 10).) What is the net operating loss reported in 2016 income statement? (Enter your answers in millions (i.e., 10,000,000 should be entered ac 10).) Not operating _____ million Prepare the journal entry to record income tax in 2017 assuming pretax accounting income is $80 million. No additional temporary differences originate in 2017.(If no entry is required for a trancaotion/event, "No Journal entry required" In the first account field. Enter your answers in millions(i.e., 10,000,000 should be entered as 10).)