Help Save & Exi Problem 16-10 Net operating loss carryback and carryforward; multiple differences [L016-2, 16-4, 16-7 Fores Construction Company reported a pretax operating loss of $220 million for financial reporting purposes in 2018. Contributing to the loss were (a) a penalty of $15 milion assessed by the Environmental Protection Agency for violation of a federal law and paid in 2018 and (b) an estimated loss of $20 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 $115 million 201760 million 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? No additional 3. Prepare the journal entry to record income taxes in 2019 assuming pretax accounting income is $595 milion temporary differences originate in 2019 Complete this question by entering your answers in the tabs below Raquired 1 Required 2 Required 3 o search 3 4 5 6 7 8 9