Wynn Farms reported a net operating loss of $280,000 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 Income   Tax Rates   Income Taxes Paid 2017 $ 84,000   30 %   $ 25,200   2018   94,000   30       28,200   2019   200,000   40       80,000   2020   40,000   45       18,000     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. Record 2021 income tax benefit from operating loss. 2. Show the lower portion of the 2021 income statement that reports the income tax benefit of the net operating loss.

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Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.