9. Wynn Farms reported a net operating loss of $140,000 for financial reporting and tax purposes in 2024. 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
2020	$ 70,000	30%	$ 21,000
2021	80,000	30	24,000
2022	120,000	25	30,000
2023	70,000	45	31,500

Required:

Prepare the journal entry to recognize the income tax benefit of the net operating loss. 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.

Show the lower portion of the 2024 income statement that reports the income tax benefit of the net operating loss.

Prepare the journal entry to recognize the income tax benefit of the net operating loss. 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. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars. Journal entry worksheet Record 2024 income tax benefit from operating loss. Note: Enter debits before credits. Show the lower portion of the 2024 income statement that reports the income tax benefit of the net operating loss. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in whole dollars