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In August 11, 2020 article from WorldOil Magazine had the following headline: "Marathon Sets Up for \$1.1 Billion Tax Refund via Coronavirus Aid Law." The article goes on to indicate, "That measure included a tax provision that allows companies to immediately leduct net operating losses and apply them to previous returns for five years from 2018, 2019, and 2020 - instead of only applying hose deductions to future years. The benefit is supercharged because deductions taken before the 2017 tax overhaul can be claimed t the 35% corporate tax rate instead of the current 21%." Marathon Petroleum Corporation's June 30, 2020, 10Q states the following: "As of June 30, 2020, the estimated cash tax refund esulting from the NOL carryback provided in the CARES Act is $1.1 billion and arises solely due to taxes paid in prior years. Absent the AARES Act, we would have recorded a deferred tax asset for the expected NOL carryforward under the currently effective federal come tax rate." Required: 1. Based only on the information provided above, prepare a journal entry that records the refund expected from applying the NOL carryback. 2. Assuming a tax rate of 35% in prior years, how much pretax net operating loss did Marathon carryback to prior periods to get the refund indicated? 3. Assume now that the CARES Act was not in effect and Marathan is not eligible for any carryback. Prepare a journal entry that records any tax expense (benefit) associated with creating a NOL carryforward, assuming a tax rate of 21% for current and future periods. 4. Whether Marathon could do an NOL carryback or an NOL carryforward, it would recover or avoid some taxes by utilizing the NOL. How much extra tax did it recover or avoid due to the difference in tax rates between prior years and future years by being able to use a carryback? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Assuming a tax rate of 35% in prior years, how much pretax net operating loss did Marathon carryback to prior periods to get the refund indicated? Note: Enter your answers in millions and round to nearest dollar amounts. Whether Marathon could do an NOL carryback or an NOL carryforward, it would recover or avoid some taxes by utilizing the NOL. How much extra tax did it recover or avoid due to the difference in tax rates between prior years and future years by being able to use a carryback

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