Exercise 16-24 (Algo) Net operating loss carryback [LO16-7] Wynn Farms reported a net operating loss of $140,000 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 Taxable Income $ 70,000 Tax Rates 30% Income Taxes Paid $21,000 80,000 30 24,000 2019 120,000 25 30,000 2020 70,000 45 31,500 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.