Solution 1:
Computation of Taxable Operating Loss (2021) | |
Particulars | Amount (In million) |
Pre tax operating Income (Loss) | -$210.00 |
Add: Non deductible penalty | $10.00 |
Add: Estimated loss contigency deductible in 2022 | $10.00 |
Taxable operating income (Loss) | -$190.00 |
Journal Entries - Fore Farms (2021) | |||
Event | Particulars | Debit (In Million) | Credit (In Million) |
1 | Deferred tax assets Dr | $50.00 | |
To Income Tax Benefits - Net operating loss | $50.00 | ||
(To record deferred tax assets for temporary differences and loss carry forward) |
Solution 2:
Income Statement - Fore Farms | |
Particulars | Amount (In Million) |
Operating Income (loss) before income tax | -$210.00 |
Income tax benefit - Net operating loss | $50.00 |
Net Operating Income (Loss) | -$160.00 |
Solution 3:
Journal Entries - Fore Farms (2022) | |||
Event | Particulars | Debit (In Million) | Credit (In Million) |
1 | Income tax expense Dr | $58.75 | |
To Income Tax payable (35*25%) | $8.75 | ||
To Deferred tax assets | $50.00 | ||
(To record income tax expense for 2022) |
13 Fore Farms reported a pretax operating loss of $210 million for financial reporting purposes in...
Fore Farms reported a pretax operating loss of $204 million for financial reporting purposes in 2021. Contributing to the loss were (a) a penalty of $4 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...
Fore Farms reported a pretax operating loss of $212 million for financial reporting purposes in 2021. Contributing to the loss were (a) a penalty of $4 million assessed by the Environmental Protection Agency for violation of a federal law and paid in 2021 and (b) an estimated loss of $30 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...
Fore Farms reported a pretax operating loss of $136 million for financial reporting purposes in 2021. Contributing to the loss were (a) a penalty of $4 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...
Fore Farms reported a pretax operating loss of $220 million for financial reporting purposes in 2021. Contributing to the loss were (a) a penalty of $16 million assessed by the Environmental Protection Agency for violation of a federal law and paid in 2021 and (b) an estimated loss of $30 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...
Fore Farms reported a pretax operating loss of $184 million for financial reporting purposes in 2021. Contributing to the loss were (a) a penalty of $4 million assessed by the Environmental Protection Agency for violation of a federal law and paid in 2021 and (b) an estimated loss of $20 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...
Fore Farms reported a pretax operating loss of $268 million for financial reporting purposes in 2021. Contributing to the loss were (a) a penalty of $4 million assessed by the Environmental Protection Agency for violation of a federal law and paid in 2021 and (b) an estimated loss of $20 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...
Fore Farms reported a pretax operating loss of $120 million for financial reporting purposes in 2021. Contributing to the loss were (a) a penalty of $4 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...
Fore Farms reported a pretax operating loss of $128 million for financial reporting purposes in 2021. Contributing to the loss were (a) a penalty of $4 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...
PLEASE HELP WITH QUESTION 3 AND EXPLAIN, THANK YOU!Fore Farms reported a pretax operating loss of $200 million for financial reporting purposes in 2021. Contributing to the loss were (a) a penalty of $8 million assessed by the Environmental Protection Agency for violation of a federal law and paid in 2021 and (b) an estimated loss of $30 million from accruing a loss contingency. The loss will be tax deductible when paid in 2022. The enacted tax rate is 25%. There were...
fore farms reported a pretax operating loss of $137 million for
financial reporting purposes in 2021. Contributing to the loss were
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...