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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
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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