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Can you please help me with the ones that I got wrong? Wynn Farms reported a net operating loss of $160,000 for financial reporting and
Can you please help me with the ones that I got wrong?
Wynn Farms reported a net operating loss of $160,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25% Taxable income, tax rates, and income taxes paid in Wynn's first four years of operation were as follows: Tax 2017 2018 2019 2020 Taxable Income $60,000 70,000 80,000 60,000 Rates 15% 15 25 30 Income Taxes Paid $ 9,000 10,500 20,000 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 to recognize the income tax benefit 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 G) Required 2 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 following table to recognize the income tax benefit of the net operating loss. (Enter your answers in whole dollars. Leave no cell blank, enter "0" wherever applicable. Enter all amounts as positive values.) Net operating loss carryback Rate % Tax $ Recorded as: Carried back - 2017 15% = $ 9,000 $ 60,000 70,000 X X 80,000 15% = X 25% 10,500 20,000 18,000 57,500 60,000x Carried back - 2018 Carried back - 2019 Carried back - 2020 Total carryback Net operating loss carryforward Carried forward 30% Receivable-income tax refund 0Step by Step Solution
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