Fore Farms reported a pretax operating loss of $$180$ million for financial reporting purposes in $2024.$ Contributing to the loss were $($a$)$ a

penalty of $$8$ 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.

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 $$185$ million. No additional

temporary differences originate in $2025.$