Exercise 16-21 Net operating loss carryback L016-7] Wynn Sheet Metal reported a net operating loss of $100,000 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 Income Taxes Paid $18,000 21,000 32,000 27,000 Taxable Tax Income Rates 2014 $60,000 30% 2015 2016 2017 70,000 30 80,000 40 60,000 45 Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operating loss. Wynn elects the carryback option 2. Show the lower portion of the 2018 income statement that reports the income tax benefit of the net operating loss