Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Wynn Sheet Metal reported an operating loss of $202,000 for financial reporting and tax purposes in 2016. The enacted tax rate is 40%. Taxable income,
Wynn Sheet Metal reported an operating loss of $202,000 for financial reporting and tax purposes in 2016. The enacted tax rate is 40%. Taxable income, tax rates, and income taxes paid in Wynn's first four years of operation were as follows: Income Taxes Taxable Tax Income Rates Paid 2012 81,000 30% 24,300 91,000 2013 27,300 30 101,000 2014 40 40,400 2015 81,000 45 36,450 Required: 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 transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands. Leave no cell blank, enter "0" wherever applicable.) s Tax operating loss carryback Rate Recorded as: x 30% 0 Carried back 2012 x 30% 0 Carried back 2013 x Carried back 2014 40% Carried back 2015 45% Total carryback 0 Receivable-income tax refund Operating loss carryforward x 40% Carried forward 0 Deferred tax asset-ending
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started