Fore Farms reported a pretax operating loss of $$168$ million for financlal 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 $$20$ million from accruing a loss contingency. The loss will be tax deductible when pald 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. Taxable income in Fores's two previous years of operation was as follows:

Requlred:

Prepare the journal entry to recognize the income tax benefit of the net operating loss in $2024.$ Assume Fore will carry back Its

NOL to prior years.

What is the net operating loss reported in $2024$ Income statement?

Prepare the journal entry to record Income taxes in $2025$ assuming pretax accounting income is $$200$ million. No additional

temporary differences originate in $2025.$

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

Prepare the journal entry to recognize the income tax benefit of the net operating loss in $2024.$ Assume fore will carry back its NOL to

prior years.

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 $10).$

Journal entry worksheet

Record $2024$ income taxes.

Note: Enter debits before credits.#$5-10$ Fore Farms reported a pretax operating loss of $$168$ million for financial reporting purposes in $2024.$ Contributing to the loss were $($a$)$ a penalty of $$4$ million assessed by the Environmental Protection Agency for violation of a federal law and paid in $2024$ and $($b$)$ an estimated loss of $$20$ 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. Taxable income in Fores$$s two previous years of operation was as follows:

$2022$ $ $76$ million

$2023$ $ $52$ million

Required:

Prepare the journal entry to recognize the income tax benefit of the net operating loss in $2024.$ Assume Fore will carry back its NOL to prior years.

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

Prepare the journal entry to record income taxes in $2025$ assuming pretax accounting income is $$200$ million. No additional temporary differences originate in $2025.$