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IRISSAK [1]
3 years ago
12

Fore Farms reported a pretax operating loss of $120 million for financial reporting purposes in 2021. Contributing to the loss w

ere (a) a penalty of $12 million assessed by the Environmental Protection Agency for violation of a federal law and paid in 2021 and (b) an estimated loss of $10 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. Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operating loss in 2021. 2. What is the net operating loss reported in 2021 income statement? 3. Prepare the journal entry to record income taxes in 2022 assuming pretax accounting income is $125 million. No additional temporary differences originate in 2022.
Business
1 answer:
satela [25.4K]3 years ago
7 0

Answer  

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

Download xlsx
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gavmur [86]

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What is the name of the document that companies use to report quarterly financial results?.
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1 year ago
Which of the following is not a bad faith action
dimulka [17.4K]

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7 0
2 years ago
In monopolistically competitive markets, resources are: Group of answer choices overallocated because long-run equilibrium occur
sasho [114]

Answer: underallocated because long-run equilibrium occurs where price exceeds marginal cost.

Explanation:

Monopolistic competition occurs when there are many firms that are producing products that are differentiated. It should also be noted that one typical characteristics of a monopolistic competition is a large number of firms coupled with low entry barriers.

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3 0
3 years ago
The owner of Hanson Manufacturing is considering the idea of establishing a smoke-free workplace and instigating an incentive pl
klemol [59]

Answer:

$2000

Explanation:

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• Smoke breaks at work which accumulate to reduce the amount of time spent doing productive work.

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