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Wynn Sheet Metal reported an operating loss of $176,000 for financial reporting and tax purposes in 2018. The enacted tax rate is 40%. Taxable income, tax rates, and income taxes paid in Wynn's first four years of operation were as follows: Taxable x Income Taxes Rates Paid Income 2014 $68,000 78,000 88,000 68,000 301 $20,400 23,400 35,200 30,600 2015 30 2016 40 2017 45 Complete the following table given below to record income taxes. (Enter your answers in thousands. Round your answers to two decimal places. Leave no cell blank, enter "0" wherever applicable.) Rate % Recorded as: Operating loss carryback Tax $ Carried back 2014 S C Carried back 2015 C Carried back 2016 Carried back- 2017 X 0.00 Receivable-income tax refund Total carryback S Operating loss carryforward Deferred tax asset-ending Carried forward X Prepare the journal entry to recognize the income tax benefit of the operating loss. Wynn elects the carryback option. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to two decimal places. Enter your answers in thousands.) View transaction list View journal entry worksheet General Journal No Event Debit Credit 1 Receivable-Income tax refund Deferred tax asset Income tax benefit-Net operating loss Show the lower portion of the 2018 income statement that reports the income tax benefit of the operating loss. (Amounts to be deducted should be indicated with a minus sign. Round your answers to two decimal places. Enter your answers in thousands.) Operating loss before income taxes Income tax benefit: Tax refund from loss carryback Future tax savings from loss carryforward 0.00 Net loss 0.00 At December 31, DePaul Corporation had a $16 million balance in its deferred tax asset account and a $142 million balance in its deferred tax liability account. The balances were due to the following cumulative temporary differences: 1. Estimated warranty expense, $20 million: expense recordeed in the year of the sale; tax-deductible when paid (one-year warranty). 2. Depreciation expense, $230 million: straight-line in the income statement; MACRS on the tax return 3. Income from installment sales of properties, $125 million: income recorded in the year of the sale; taxable when received equally over the next five years 4. Rent revenue collected in advance, $20 million; taxable in the year collected; recorded as income when the performance obligation is satisfied in the following year Required: Assuming DePaul will show a single noncurrent net amount in its December 31 balance sheet, indicate that amount and whether it is a net deferred tax asset or liability. The tax rate is 40 % Determine the deferred tax amounts to be reported in the December 31 balance sheet. The tax rate is 40%. (Enter your answers in millions.) Net deferred tax liability million
