Wynn Farms reported a net operating loss of $160,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25%. Taxable income tax rates, and income taxes paldin Wynn's first four years of operation were as follows: 2017 2018 2019 2020 Taxable Income $60,000 70,000 80,000 60,000 Tax Rates 156 15 25 30 Income Taxes Paid $ 9,000 10,500 20,000 18,000 Required: 1. 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. Complete the table given below to recognize the income tax benefit of the net operating loss. 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. Required 1 Calculation Required 16) Required 2 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. Complete the following table to recognize the income tax benefit of the net operating loss. (Enter your answers in whole dollars. Leave no cell blank, enter"0" wherever applicable. Enter all amounts as positive values.) Het Required 1 Calculation Required 1 G) Required 2 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. Complete the following table to recognize the income tax benefit of the net operating loss. (Enter your answers in whole dollars. Leave no cell blank, enter"0" wherever applicable. Enter all amounts as positive values.) Net operating loss carryback Rate Tax $ Recorded as: % Carried back - 2017 $ 0 x 15% S 0 Carried back - 2018 0 15% 0 Carried back-2019 80 25% 20 Carried back - 2020 60 30% 18 Total carryback s 38 Income tax expense Net operating loss carryforward Carried forward 20 X X 25% s 5 Deferred tax asset-ending > X Blololo X Required 1 GJ > Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 G Required 2 Prepare the journal entry to recognize the income tax benefit of the net operating loss. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) No Event General Journal Debit Credit Required 1 Calculation Required 1 Required 2 2 Show the lower portion of the 2021 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 whole dollars.) Income tax benefit: 0 $ 0
