Wynn Sheet Metal reported a net operating loss of $104,000 for financial reporting and tax purposes...

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Wynn Sheet Metal reported a net operating loss of $104,000 for financial reporting and tax purposes in 2018. The enacted tax rate is 35%. Taxable income, tax rates, and income taxes paid in Wynn's first four years of operation were as follows: Тахable Таx Income Taxes Income Rates Paid 2014 2015 2016 2017 $62,000 72,000 82,000 62,000 25% 25 35 $15,500 18,000 28,700 24,800 40 Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operating loss. Wynn elects the carryback option. 2. Show the lower portion of the 2018 income statement that reports the income tax benefit of the net operating loss. Required 1 Required 2 Prepare the journal entry to recognize the income tax benefit of the net 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 and round your answers to 1 decimal place.) View transaction list Journal entry worksheet 1 Record 2018 income tax benefit from operating loss. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2 Show the lower portion of the 2018 income statement that reports the income tax benefit of the net operating loss. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands and round your answers to 1 decimal place.) Required 1 Required 2 Wynn Sheet Metal reported a net operating loss of $104,000 for financial reporting and tax purposes in 2018. The enacted tax rate is 35%. Taxable income, tax rates, and income taxes paid in Wynn's first four years of operation were as follows: Тахable Таx Income Taxes Income Rates Paid 2014 2015 2016 2017 $62,000 72,000 82,000 62,000 25% 25 35 $15,500 18,000 28,700 24,800 40 Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operating loss. Wynn elects the carryback option. 2. Show the lower portion of the 2018 income statement that reports the income tax benefit of the net operating loss. Required 1 Required 2 Prepare the journal entry to recognize the income tax benefit of the net 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 and round your answers to 1 decimal place.) View transaction list Journal entry worksheet 1 Record 2018 income tax benefit from operating loss. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2 Show the lower portion of the 2018 income statement that reports the income tax benefit of the net operating loss. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands and round your answers to 1 decimal place.) Required 1 Required 2

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