Wynn Sheet Metal reported an operating loss of $100,000 for financial reporting and tax purposes in 2011.

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Wynn Sheet Metal reported an operating loss of $100,000 for financial reporting and tax purposes in 2011. 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:

Required:

1. Prepare the journal entry to recognize the income tax benefit of the operating loss. Wynn elects the carryback option.

2. Show the lower portion of the 2011 income statement that reports the income tax benefit of the operating loss.

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Intermediate Accounting

ISBN: 978-0077400163

6th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

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Question Posted: Jul 05, 2013 07:17 AM

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Wynn Sheet Metal reported an operating loss of $100,000 for financial reporting and tax purposes in 2011.

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Requirement 1 in thousands Current Prior Years Year 2009 2010 2011 Operating loss ...View the full answer

Intermediate Accounting

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