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Please help Wynn Farms reported a net operating loss of $260,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25%.
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Wynn Farms reported a net operating loss of $260,000 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: Taxable Tax Income Rates 2017 S 80,000 30% 2018 90,000 30 2019 180,000 40 202060,000 45 Income Taxes Paid $24,000 27,000 72,000 27,000 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. Required: a. What's the amount of tax benefits of NOL carrybacks for Wynn (3 points)? b. What's the $ amount of tax benefits of NOL carryforwards for Wynn (3 points)? c. Please prepare the journal entry to recognize the income tax benefit of the net operating loss (3 points). d. After considering the tax benefit of the net operating loss, what's the company's net loss (1 point)Step by Step Solution
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