Wynn Farms reported a net operating loss of $156,000 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 2821 2822 2023 Taxable Income $ 74,000 84,900 136,000 74,000 Tax Rates 30% 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. View transaction list 38 25 45 Complete this question by entering your answers in the tabs below. Income Taxes Paid $ 22,200 25, 200 34,000 33,300 Required 1 Required 2 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. Note: 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. Journal entry worksheet < Transaction 1 Record 2024 income tax benefit from operating loss. Record entry Note: Enter debits before credits. General Journal Clear entry Debit Credit View general journal Show less A
Wynn Farms reported a net operating loss of $156,000 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 2821 2822 2023 Taxable Income $ 74,000 84,900 136,000 74,000 Tax Rates 30% 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. View transaction list 38 25 45 Complete this question by entering your answers in the tabs below. Income Taxes Paid $ 22,200 25, 200 34,000 33,300 Required 1 Required 2 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. Note: 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. Journal entry worksheet < Transaction 1 Record 2024 income tax benefit from operating loss. Record entry Note: Enter debits before credits. General Journal Clear entry Debit Credit View general journal Show less A
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...
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Transcribed Image Text:Wynn Farms reported a net operating loss of $156,000 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
$ 74,000
84,000
136,000
74,000
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.
Tax
Rates
30%
30
25
45
Complete this question by entering your answers in the tabs below.
Required 2
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.
Note: 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.
View transaction list
Income Taxes
Paid
$ 22, 200
25, 200
34,000
33,300
Journal entry worksheet
< 1
Record 2024 income tax benefit from operating loss.
Transaction
1
Note: Enter debits before credits.
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
Show less A
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