Wynn Farms reported a net operating loss of $168,000 for financial reporting and tax purposes in 2021. 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 Tax Income Taxes Paid Income Rates 2017 $77,000 20% $15,400
Wynn Farms reported a net operating loss of $168,000 for financial reporting and tax purposes in 2021. 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 Tax Income Taxes Paid
Income Rates
2017 $77,000 20% $15,400
2018 87,000 20 17,000
2019 148,000 25 37,000
2020 77,000 40 30,800
Required:
1.Prepare the
Journal entry worksheet
- Record 2021 income tax benefit from operating loss.
Required 2:
Show the lower portion of the 2021 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 whole dollars).
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