Fore Farms reported a pretax operating loss of $276 million for financial reporting purposes in 2021. 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 2021 and (b) an estimated loss of $30 million from accruing a loss contingency. The loss will be tax deductible when paid in 2022. The enacted tax rate is 25%. There were no temporary differences at the beginning of the year and none originating in 2021 other than those described above. Taxable income in Foress two previous years of operation was as follows:

2019	$	124	million
2020	$	100	million

Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operating loss in 2021. Assume Fore will carry back its NOL to prior years. 2. What is the net operating loss reported in 2021 income statement? 3. Prepare the journal entry to record income taxes in 2022 assuming pretax accounting income is $296 million. No additional temporary differences originate in 2022.

Prepare the journal entry to recognize the income tax benefit of the net operating loss in 2021. Assume Fore will carry back its NOL to prior years. (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).)

No	Transaction	General Journal	Debit	Credit
1	1	Receivable - Income tax refund	56
		Deferred tax asset	24 incorrect
		Income tax expense		32 incorrect

What is the net operating loss reported in 2021 income statement? (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).)

Net operating loss

Prepare the journal entry to record income taxes in 2022 assuming pretax accounting income is $296 million. No additional temporary differences originate in 2022. (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).)

No	Transaction	General Journal	Debit	Credit
1	1	Income tax expense	74
		Deferred tax asset	12 incorrect
		Income tax payable		86 incorrect