Hi there,Need help with question, thanks! Wynn Farms reported a net operating loss of $165,000 for financial reporting and tax purposes in 2024. The enacted tax rate is 25%.Taxable income, tax rates, and income taxes paid in Wynn's first four years of operation were as follows:2020202128222023TaxableIncome$ 61,00071,00085,00040,000Tax Rates30%304045Required:1. NOL carrybacks are not allowed for most companies, except for property and casualty insurance companies as well as somefarm-related businesses. Assume Wynn is one of those businesses. Complete the table given below and prepare the journalentry to recognize the income tax benefit of the net operating loss.2. Show the lower portion of the 2024 income statement that reports the income tax benefit of the net operating loss.Income TaxesPaid$18,30021,30034,00018,000Complete this question by entering your answers in the tabs below.Required 1 Required 1 GJ Required 2CalculationOperating loss carrybackCarried back-2020Carried back-2021NOL 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 ofthe net operating loss.Note: Enter your answers in whole dollars. Leave no cell blank, enter "0" wherever applicable. Enter all amounts as positive values.Show less ACarried back-2022Carried back - 2023Total carrybackOperating loss carryforwardCarried forwardxRate %Required 1 Calculation====Tax $Recorded as:Required 1 GJ >

Deferred tax asset:When a business's taxable profit is greater than its earnings reported in its…

Wynn Farms reported a net operating loss of $165,000 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 2822 2023 Taxable Income $ 61,000 71,000 85,000 40,000 Tax Rates 30% 30 40 45 Income Taxes Paid $18,300 21,300 34,000 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 and prepare the journal entry to recognize the income tax benefit of the net operating loss. 2. Show the lower portion of the 2024 income statement that reports the income tax benefit of the net operating loss. Complete this question by entering your answers in the tabs below. Operating loss carryback Carried back-2020 Carried back-2021 Carried back-2022 Carried back-2023 Total carryback Operating loss carryforward Carried forward Required 1 Required 1 GJ Required 2 Calculation 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. Note: Enter your answers in whole dollars. Leave no cell blank, enter "0" wherever applicable. Enter all amounts as positive values. Show less A x X x x Rate % < Required 1 Calculation = Tax $ Recorded as: Required 1 GJ >

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...