Question
Wynn Sheet Metal reported an operating loss of $160,000 for financial reporting and tax purposes in 2013. The enacted tax rate is 40%. Taxable income,
Wynn Sheet Metal reported an operating loss of $160,000 for financial reporting and tax purposes in 2013. The enacted tax rate is 40%. 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 2009 $ 60,000 30 % $ 18,000 2010 70,000 30 21,000 2011 80,000 40 32,000 2012 60,000 45 27,000
1. | Complete the following table given below and prepare the journal entry to recognize the income tax benefit of the operating loss. Wynn elects the carryback option. (If no entry is required for a particular event, select "No journal entry required" in the first account field. Enter your answers in thousands.)
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