reported a pretax operating loss of $$137$ million for financial reporting purposes in $2021.$ Contributing to the loss were $($a$)$ a penalty of $$5$ million assessed by the Environmental Protection Agency for violation of a federal law and paid in $2021$ and $($b$)$ an estimated loss of $$12$ 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:

$\backslash$table$[[2019,$$$80$ million$],[2020,$$$32$ million$]]$

Required:

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.

Show the lower portion of the $2021$ income statement that reports the income tax benefit of the net operating loss.

Prepare the journal entry to record income taxes in $2022$ assuming pretax accounting income is $$160$ million. No additional temporary differences originate in $2022.$