Wynn Farms reported a net operating loss of $160,000 for financial reporting and tax purposes in 2021. The enacted tax r

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Wynn Farms Reported A Net Operating Loss Of 160 000 For Financial Reporting And Tax Purposes In 2021 The Enacted Tax R 1 (188.22 KiB) Viewed 55 times

Wynn Farms reported a net operating loss of $160,000 for financial reporting and tax purposes in 2021. The enacted tax rate Taxable income, tax rates, and income taxes paid in Wynn's first four years of operation were as follows: 2017 2018 2019 2020 Taxable Tax Income Rates Income Taxes Paid $ 75,000 20% 85,000 20 140,000 25 75,000 40 Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operating loss. NOL carrybacks are not allowed for m companies, except for property and casualty insurance companies as well as some farm-related businesses. Assume Wynn is o those businesses. 2. Show the lower portion of the 2021 income statement that reports the income tax benefit of the net operating loss. $15,000 17,000 35,000 30,000 Required 1 Required 2 Complete this question by entering your answers in the tabs below. Operating loss before income taxes Income tax benefit Net loss Answer is not complete. Show the lower portion of the 2021 income statement that reports the income tax benefit of the net operating loss. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in whole dollars.) $ < Required 1 0 Required 2 >