Wynn Sheet Metal reported a net operating loss of $102,000 for financial reporting and tax purposes in 2018. The enacted tax rate is 30%. Taxable income, tax rates, and income taxes paid in Wynns first four years of operation were as follows:

	Taxable Income			Tax Rates			Income Taxes Paid
2014	$	61,000		20	%		$	12,200
2015		71,000		20				14,200
2016		81,000		30				24,300
2017		61,000		40				24,400

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.

9 Wynn Sheet Metal reported a net operating loss of $102,000 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 Income $61,000 71,000 81,000 61,000 2014 2015 2016 2017 Tax Rates 20% 20 30 40 3.67/11.12 points awarded Income Taxes Paid $12,200 14,200 24,300 24,400 Scored 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 Receivable-Income tax refund Deferred tax asset Income tax benefitNet operating loss 24.400.0 % 12.300.0 x 36,700.0 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect: no points deducted. Wynn Sheet Metal reported a net operating loss of $102,000 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: 2014 Taxable Income $61,000 71,000 81,000 61,000 Tax Rates 20% 20 30 40 3 67/1112 points awarded 2015 2016 2017 Income Taxes Paid $12,200 14,200 24,300 24,400 Scored 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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.) Operating loss before income taxes Receivable - Income tax refund $ 102,000 X x 36,700.0 % Net loss 138,700.0 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect: no points deducted