Wynn Farms reported a net operating loss of $230,000 for financial reporting and tax purposes in...

 

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Wynn Farms reported a net operating loss of $230,000 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: Taxable Income Income Taxes Paid Tax Rates 2020 $ 74,000 30% $22,200 2021 2022 2023 84,000 150,000 60,000 30 25,200 40 60,000 45 27,000 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. Required 1 Calculation Required 1 GJ Required 2 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. Operating loss carryback Show less Rate % Tax $ Recorded as: Carried back-2020 x $ 0 Carried back-2021 X $ 0 Carried back-2022 X Carried back-2023 X Wynn Farms reported a net operating loss of $230,000 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: Taxable Income Income Taxes Paid Tax Rates 2020 $ 74,000 30% $22,200 2021 2022 2023 84,000 150,000 60,000 30 25,200 40 60,000 45 27,000 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. Required 1 Calculation Required 1 GJ Required 2 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. Operating loss carryback Show less Rate % Tax $ Recorded as: Carried back-2020 x $ 0 Carried back-2021 X $ 0 Carried back-2022 X Carried back-2023 X

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Required 1 Calculation NOL Carryback Benefit Since Wynn Farms reported a net operating loss NOL of 2... View the full answer