Fore Farms reported a pretax operating loss of $$228$ 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 $$30$ 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,$$$100$ million

$2023,$$$76$ 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 $$248$ 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

$1$

Record $2024$ income taxes.

Note: Enter debits before credits.