Fores Construction Company reported a pretax operating loss of $240 million for financial reporting purposes in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Fores Construction Company reported a pretax operating loss of $240 million for financial reporting purposes in 2018. Contributing to the loss were (a) a penalty of $15 million 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 2017 $105 million 50 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 $90 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 option. (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).) View transaction list Journal entry worksheet < 1 Record 2018 income taxes. Note: Enter debits before credits. Event 1 General Journal Debit Credit Fores Construction Company reported a pretax operating loss of $240 million for financial reporting purposes in 2018. Contributing to the loss were (a) a penalty of $15 million 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. A 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 $105 million 50 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 $90 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 < Required 1 Required 3 > Fores Construction Company reported a pretax operating loss of $240 million for financial reporting purposes in 2018. Contributing to the loss were (a) a penalty of $15 million 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 2017 $105 million 50 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 $90 million. No additional temporary differences originate in 2019. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record income taxes in 2019 assuming pretax accounting income is $90 million. No additional temporary differences originate in 2019. (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).) View transaction list Journal entry worksheet < 1 Required 3 Record 2019 income taxes. Note: Enter debits before credits. Event 1 General Journal Debit Credit Fores Construction Company reported a pretax operating loss of $240 million for financial reporting purposes in 2018. Contributing to the loss were (a) a penalty of $15 million 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 2017 $105 million 50 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 $90 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 option. (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).) View transaction list Journal entry worksheet < 1 Record 2018 income taxes. Note: Enter debits before credits. Event 1 General Journal Debit Credit Fores Construction Company reported a pretax operating loss of $240 million for financial reporting purposes in 2018. Contributing to the loss were (a) a penalty of $15 million 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. A 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 $105 million 50 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 $90 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 < Required 1 Required 3 > Fores Construction Company reported a pretax operating loss of $240 million for financial reporting purposes in 2018. Contributing to the loss were (a) a penalty of $15 million 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 2017 $105 million 50 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 $90 million. No additional temporary differences originate in 2019. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record income taxes in 2019 assuming pretax accounting income is $90 million. No additional temporary differences originate in 2019. (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).) View transaction list Journal entry worksheet < 1 Required 3 Record 2019 income taxes. Note: Enter debits before credits. Event 1 General Journal Debit Credit
Expert Answer:
Answer rating: 100% (QA)
Requirement 1 in millions Accounting loss Nontemporary difference Fine paid Temporary diff... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
Students also viewed these general management questions
-
Find (1) 95% (ii) 99% (iii) 90% confidence interval for he men of normally distributed population from which the following sample was taken 15, 17, 10, 18, 16, 9, 7, 11, 13, 14 and also find the...
-
The following table lists the 15 largest U.S. universities according to enrollment in a recent year. RANK UNIVERSITY STATE ENROLLMENT 1 Texas A&M TX 63,813 2 University of Central Florida FL...
-
AT&T is offering a 600-minute peak plan with free mobile-to-mobile and weekend minutes at $59 per month plus $0.13 per minute for every minute over 600. The next plan up is the 800-minute plan that...
-
Modesto Trading Berhad has recently appointed Messrs. Suresh Kumar & Co., Chartered Accountants, to audit the companys financial statements for the year ended 30 June 2021. You are assigned by...
-
In many compensation plans, short- term incentive awards are based on both earnings based performance measures and non- financial measures such as attainment of personal goals. Why? Why might the...
-
A tank is full of water. Find the work required to pump the water out of the outlet. In Exercises 23 and 24 use the fact that water weighs 62.5 lb/ft3. 21. 22. Im - 3 m - 2 m 3 m 1.5 m 6 m 23. 24. E...
-
A jet engine is to be designed for an altitude of \(12,000 \mathrm{~m}\), where the atmospheric pressure is \(19.3 \mathrm{kPa}\). The jet nozzle has a supersonic exit Mach number and is perfectly...
-
Oranges are grown, picked, and then stored in warehouses in Tampa, Miami, and Fresno. These warehouses supply oranges to markets in New York, Philadelphia, Chicago, and Boston. The following table...
-
On November 1, 2022, Sandhill Inc. adopted a stock option plan that granted options to key executives to purchase 32,300 shares of the company's common shares. The options were granted on January 2,...
-
Start with the partial model in the file Ch21 P08 Build a Model.xlsx on the textbook's Web site. Kasperov Corporation has an unlevered cost of equity of 12% and is taxed at a 40% rate. The 4-year...
-
Annie and Brad are partners in the A&B Accounting Practice, located in Hawthorn. The partnership's accounting profit for the year ending 30 June 2020 was $150,000 after the following items were...
-
How does management determine what depreciation method to use?
-
How do cutting-edge technologies such as artificial intelligence and blockchain facilitate organizational flexibility, enabling dynamic resource allocation, process optimization, and rapid...
-
In what nuanced ways do multinational corporations cultivate strategic alliances with governmental entities and international organizations, leveraging intricate geopolitical insights and diplomatic...
-
A cargo space 20 metres wide, 24 metres long and 4 metres high is to be partly loaded with 350 tonnes of baled paper (stowage factor 1.6). How many tonnes of cartoned metal boxes (stowage factor 0.8)...
-
Help me explaining the questions with examples of the following: Understanding Decision-Making as a Process Decision-Making and Problem Solving as a Process Decision-Making as a Strategy...
-
Your corporation is currently all-equity financed with 400,000 shares of common stock selling for $37 a share. Currently your firm generates $4,000,000 in EBIT annually and has a 27% dividend payout...
-
An Atomic Energy Commission nuclear facility was established in Hanford, Washington, in 1943. Over the years, a significant amount of strontium 90 and cesium 137 leaked into the Columbia River. In a...
-
On two previous occasions, the management of Dennison and Company, Inc., repurchased some of its common shares. Between buyback transactions, the corporation issued common shares under its management...
-
On January 1, a company issued 3%, 20-year bonds with a face amount of $80 million for $69,033,776 to yield 4%. Interest is paid semiannually. What was the straight-line interest expense on the...
-
York Co. sells one product, which it purchases from various suppliers. York's trial balance at December 31, 2018, included the following accounts: Sales (33,000 units @ $16) ...........................
-
What are the main types of investors that fund entrepreneurial ventures?
-
What steps are needed to show that entrepreneurial finance is beneficial to the economy at large?
-
What are the main challenges that entrepreneurs and investors face at the four steps of the funding cycle, as described in the FIRE framework?
Study smarter with the SolutionInn App