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Fore Farms reported a pretax operating loss of $ 1 0 0 million for financial reporting purposes in 2 0 2 4 . Contributing to

Fore Farms reported a pretax operating loss of $100 million for financial reporting purposes in 2024. Contributing to the loss were (a) a 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). 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 5.50).
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.
Complete this question by entering your answers in the tabs below.
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).
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