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 Taxable Tax Income Rates $ 76,000 25% 86,000 25 144,000 Income Taxes Paid $19,000 21,500 25 76,000 40 36,000 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.