5. Wynn Farms reported a net operating loss of $220,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25%. Taxable income, tax rates, and income taxes paid in Wynns first four years of operation were as follows:

	Taxable Income			Tax Rates			Income Taxes Paid
2017	$	72,000		30	%		$	21,600
2018		82,000		30				24,600
2019		140,000		40				56,000
2020		40,000		45				18,000

Required: 1. NOL carrybacks are not allowed for most companies, except for property and casualty insurance companies as well as some farm-related businesses. Assume Wynn is one of those businesses. Complete the table given below and prepare the journal entry to recognize the income tax benefit of the net operating loss. 2. Show the lower portion of the 2021 income statement that reports the income tax benefit of the net operating loss

Required 1 GJ:

1. Record 2021 income tax benefit from operating loss

2. 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 Calculation Required 1 GJ Required 2 NOL carrybacks are not allowed for most companies, except for property and casualty insurance companie farm-related businesses. Assume Wynn is one of those businesses. Complete the following table to recogn benefit of the net operating loss. (Enter your answers in whole dollars. Leave no cell blank, enter "0" wher Enter all amounts as positive values.) Rate % Tax $ Recorded as: Operating loss carryback Carried back - 2017 X $ 0 Carried back - 2018 X $ 0 Carried back - 2019 = $ 0 Carried back - 2020 Total carryback Operating loss carryforward Carried forward = Required 1 Calculation Required 1 GJ Required 2 Show the lower portion of the 2021 income statement that reports the inc loss. (Amounts to be deducted should be indicated with a minus sign. Ente Income tax benefit: 0 $ 0 buired 1 GJ Require Net income Net loss