Problem 16-10 Operating loss carryback and carryforward, multiple differences [LO16-2, 16-4,16-7) Fores Construction Company reported a pretax operating loss of $180 million for financial reporting purposes in 2013. 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 2013 and (b) an estimated loss of $20 million from accruing a loss contingency. The loss will be tax deductible when paid in 2014 The enacted tax rate is 40%. There were no temporary differences at the beginning of the year and none originating in 2013 other than those described above. Taxable income in Fores's two previous years of operation was as follows 2011 $90 million 2012 40 million Required 1. Prepare the journal entry to recognize the income tax benefit of the operating loss in 2013. Fores elects the carryback option. (If no entry is required for an event, select "No journal entry required" in the first account field. Enter your answers in millions.) view transaction list view general journal Journal Entry Worksheet Record 2013 income taxes Event General Journal Debit Credit