Fores Construction Company reported a pretax operating loss of $150 million for financial reporting purposes in 2018 Contributing to the loss were a) a penalty of $5 million assessed by the Environmental Protection Agency for violation of a federal law and paid in 2018 and (b) an estimated loss of $10 million from accruing a loss contingency. The loss will be tax deductible when paid in 2019 The enacted tax rate is 40%. There were no temporary differences at the beginning of the year and none originating in 2018 other than those described above. Taxable income in Fores's two previous years of operation was as follows: 2016 2017 $85 million 35 million Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operating loss in 2018. Fores elects the carryback option 2. What is the net operating loss reported in 2018 income statement? 3. Prepare the journal entry to record income taxes in 2019 assuming pretax accounting income is $80 million. No additional temporary differences originate in 2019 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entry to recognize the income tax benefit of the net operating loss in 2018, Fores elects the carryback optio no entry is required for a transaction event, select "No journal entry required in the first account field. Enter your answers in mi (ie, 10,000,000 should be entered as 10).) View transaction list Journal entry worksheet Record 2018 income taxes. Note taber debits before credits General Journal Debit Credit Record entry Clear entry View general journal Required 2 > Fores Construction Company reported a pretax operating loss of $150 million for financial reporting purposes in 2018. Contributing to the loss were (a) a penalty of $5 million assessed by the Environmental Protection Agency for violation of a federal law and paid in 2018 and (b) an estimated loss of $10 million from accruing a loss contingency. The loss will be tax deductible when paid in 2019. The enacted tax rate is 40%. There were no temporary differences at the beginning of the year and none originating in 2018 other than those described above. Taxable income in Fores's two previous years of operation was as follows: 2016 2017 $ 85 million 35 million Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operating loss in 2018. Fores elects the carryback option 2. What is the net operating loss reported in 2018 income statement? 3. Prepare the journal entry to record income taxes in 2019 assuming pretax accounting income is $80 million No additional temporary differences originate in 2019. 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 2018 income statement? (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Net operating loss million Fores Construction Company reported a pretax operating loss of $150 million for financial reporting purposes in 2018 Contributing to the loss were (a) a penalty of $5 million assessed by the Environmental Protection Agency for violation of a federal law and paid in 2018 and (b) an estimated loss of $10 million from accruing a loss contingency. The loss will be tax deductible when paid in 2019 The enacted tax rate is 40% There were no temporary differences at the beginning of the year and none originating in 201 other than those described above. Taxable income in Fores's two previous years of operation was as follows 2016 2017 85 million 35 Billion Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operating loss in 2018. Fores elects the carryback option 2 What is the net operating loss reported in 2018 income statement? 3. Prepare the journal entry to record income taxes in 2019 assuming pretax accounting income is $80 million. No additional temporary differences originate in 2019. 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 2019 assuming pretax accounting income is $80 million. No additional tempor differences originate in 2019. (If no entry is required for a transaction event, select "No journal entry required in the first accou field. Enter your answers in millions (1.., 10,000,000 should be entered as 10).) Vww transaction list Journal entry worksheet Record 2019 income taxes. Note: Enter debts before credits Eve General Journal Debit Credit Record entry Entry Required a
