Wynn Farms reported a net operating loss of $100,000 for financial reporting and tax purposes in 2024. 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: 2020 2021 2022 2023 Taxable Income $ 60,000 70,000 80,000 60,000 Tax Rates 15% 15 2.5 30 Income Taxes Paid $9,000 10,500 20,000 18,000 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 2024 income statement that reports the income tax benefit of the net operating loss. Complete this question by entering your answers in the tabs below.

Wynn Farms reported a net operating loss of $100,000 for financial reporting and tax purposes in 2024 . 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: Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operoting loss. NOL carybacks 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 lowet portion of the 2024 income statement that reports the income tax benefit of the net operating loss. Complete this question by entering your answers in the tabs below. Journal entry worksheet Complete this question by entering your answers in the tabs below. Show the lower portion of the 2024 incorne statement that reports the income tax benefit of the net operating loss. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in wholo dollars