Exercise 16-24 (Algo) Net operating loss carryback [LO16-7] Wynn Farms reported a net operating loss of $164,000 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: 2017 2018 2019 2020 $ 76,000 Taxable Tax Income: Rates 25% Income Taxes Paid $19,000 86,000 25 21,500 144,000 25 36,000 76,000 40. 30,400 Required: 1. 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. 2. Show the lower portion of the 2021 income statement that reports the income tax benefit of the net operating loss. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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. (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.) Required 1 Required 2 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 those businesses. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Ente answers in whole dollars.) View transaction list View journal entry worksheet No Event General Journal 1 1 Receivable-Income tax refund Income tax expense Required 1 Required 2 > Debit Credit 57,500 57,500 Required: 1. Prepare the journal entry to recognize the income tax benefit of the net opera companies, except for property and casualty insurance companies as well as so those businesses. 2. Show the lower portion of the 2021 income statement that reports the income Complete this question by entering your answers in the tabs below. Required 1 Required 2 Show the lower portion of the 2021 income statement that reports the income tax b to be deducted should be indicated with a minus sign. Enter your answers in whole Operating loss before income taxes Income tax benefit Net loss $ 212,000 212,000 < Required 1 Required 2