Problem on accruing a loss contingency

Reference no: EM13144180

Fores Construction Company reported a pretax operating loss of $150 million for financial reporting purposes in 2011. 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 2011 and (b) an estimated loss of $5 million from accruing a loss contingency. The loss will be tax deductible when paid in 2012?

Reference no: EM13144180

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