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Fore Forms reported a pretax operating loss of $252 million for financial reporting purposes in 2021. Contributing to the loss were a) a penalty of

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Fore Forms reported a pretax operating loss of $252 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 $20 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 Fores's two previous years of operation was as follows: 2019 2020 $112 million 3.8 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 is 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 $272 million. No additional temporary differences originate in 2022 Redired 1 Required 2 Required 3 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 (ie, 10,000,000 should be entered as 10).) NO Transaction Credit Debit 36 1 1 General Journal Receivable - Income tax refund Deferred tax asset Income tax expense 12 X 48 Rob Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the net operating loss reported in 2021 Income statement? (Enter your answer in millions Le 10,000,000 should be entered as 10).) Net operating loss 204 million Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entry to record income taxes in 2022 assuming pretax accounting income is $272 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).) General Journal Credit Transaction No Debit 44% 1 1 Income tax expense Deferred tax asset Interest payable 12 32 X

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