• Intermediate accounting III Columbia College

Wynn Sheet Metal reported a net operating loss of $136,000 for financial reporting and tax purposes in 2018. The enacted tax rate is 30%. Taxable income, tax rates, and income taxes paid in Wynn's first four years of operation were as follows:

Taxable

IncomeTax

RatesIncome Taxes Paid

2014$78,00020%$15,600

201588,0002017,600

201698,0003029,400

201778,0003527,300

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.

Prepare the journal entry to recognize the income tax benefit of the net operating loss. Wynn elects the carryback option.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands and round your answers to 1 decimal place.)

No Event General Journal Debit Credit

1 1 ReceivableIncome tax refund selected answer correct

42.7 selected answer correct not attempted

Income tax benefitNet operating loss selected answer correct not attempted 42.7

Show the lower portion of the 2018 income statement that reports the income tax benefit of the net operating loss.(Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands and round your answers to 1 decimal place.)

Income tax benefitnet operating loss selected answer correct not attempted

Operating loss before income taxes selected answer correct (136.0)selected answer correct

Net lossselected answer correct

$(136.0)

I need help with this question I cannot figure out the correct answer for Income tax benefitnet operating loss