Fore Farms reported a pretax operating loss of $$100$ million for financial reporting purposes in $2024.$ Contributing to the loss were $($a$)$ a Fore Farms reported a pretax operating loss of $$100$ million for financial reporting purposes in $2024.$ Contributing to the loss were $($a$)$ a

penalty of $$4$ million assessed by the Environmental Protection Agency for violation of a federal law and paid in $2024$ and $($b$)$ an

estimated loss of $$10$ million from accruing a loss contingency. The loss will be tax deductible when paid in $2025.$

The enacted tax rate is $25\%.$ There were no temporary differences at the beginning of the year and none originating in $2024$ other

than those described above.

Required:

Prepare the journal entry to recognize the income tax benefit of the net operating loss in $2024.$

What is the net loss reported in $2024$ income statement?

Prepare the journal entry to record income taxes in $2025$ assuming pretax accounting income is $$115$ million. No additional

temporary differences originate in $2025.$

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Required $2$

Required $3$

What is the net loss reported in $2024$ income statement?

Note: Enter your answers in millions $($i$.$e$.,10,000,000$ should be entered as $10).$ Fore Farms reported a pretax operating loss of $$100$ million for financial reporting purposes in $2024.$ Contributing to the loss were $($a$)$ a

penalty of $$4$ million assessed by the Environmental Protection Agency for violation of a federal law and paid in $2024$ and $($b$)$ an

estimated loss of $$10$ million from accruing a loss contingency. The loss will be tax deductible when paid in $2025.$

The enacted tax rate is $25\%.$ There were no temporary differences at the beginning of the year and none originating in $2024$ other

than those described above.

Required:

Prepare the journal entry to recognize the income tax benefit of the net operating loss in $2024.$

What is the net loss reported in $2024$ income statement?

Prepare the journal entry to record income taxes in $2025$ assuming pretax accounting income is $$115$ million. No additional

temporary differences originate in $2025.$

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Required $3$

Prepare the journal entry to record income taxes in $2025$ assuming pretax accounting income is $$115$ million. No additional

temporary differences originate in $2025.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your

answers in millions rounded to $2$ decimal places $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}50).$

penalty of $$4$ million assessed by the Environmental Protection Agency for violation of a federal law and paid in $2024$ and $($b$)$ an

estimated loss of $$10$ million from accruing a loss contingency. The loss will be tax deductible when paid in $2025.$

The enacted tax rate is $25\%.$ There were no temporary differences at the beginning of the year and none originating in $2024$ other

than those described above.

Required:

Prepare the journal entry to recognize the income tax benefit of the net operating loss in $2024.$

What is the net loss reported in $2024$ income statement?

Prepare the journal entry to record income taxes in $2025$ assuming pretax accounting income is $$115$ million. No additional

temporary differences originate in $2025.$

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Required $3$

Prepare the journal entry to recognize the income tax benefit of the net operating loss in $2024.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your

answers in millions $($i$.$e$.,10,000,000$ should be entered as $10).$