Wynn Farms reported a net operating loss of $270,000 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: 2017 $ 2018 2019 Taxable Income 2020 82,000 92,000 190,000 40,000 Tax Rates 30 % 30 40 Income Taxes Paid 45 $ 24,600 27,600 76,000 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. 2. Show the lower portion of the 2021 income statement that reports the income tax benefit of the net operating loss. Please correct answer only wit explanation. Thank you so much!

Wynn Farms reported a net operating loss of $270,000 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: 2017 $ 2018 2019 Taxable Income 2020 82,000 92,000 190,000 40,000 Tax Rates 30 % 30 40 Income Taxes Paid 45 $ 24,600 27,600 76,000 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. 2. Show the lower portion of the 2021 income statement that reports the income tax benefit of the net operating loss. Please correct answer only wit explanation. Thank you so much!

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...

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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 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…
Wynn Farms reported a net operating loss of $285,000 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: TaxableIncome TaxRates Income TaxesPaid 2017 $ 85,000 30 % $ 25,500 2018 95,000 30 28,500 2019 205,000 40 82,000 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.2. Show the lower portion of the 2021 income statement that reports the income tax benefit of the net operating loss.
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: TaxableIncome TaxRates Income TaxesPaid 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.
Wynn Farms reported a net operating loss of $144,000 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 2017 $ 71,000 20% 2018 81,000 20 2019 124,000 25 2020 71,000 40 Rates Income Taxes Paid 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 2021 Income statement that reports the income tax benefit of the net operating loss. Complete this question by entering your answers in the tabs below. View transaction list 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,…
Wynn Farms reported a net operating loss of $180,000 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: Taxable Income Tax Rates Income Taxes Paid 2020 $ 80,000 20% $ 16,000 2021 90,000 20 18,000 2022 160,000 25 40,000 2023 80,000 35 28,000 Required: 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. Show the lower portion of the 2024 income statement that reports the income tax benefit of the net operating loss.
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Hoover Property and Casualty Insurance Corporation reported a net operating loss of $110,000 for financial reporting and tax purposes in 2019. The enacted tax rate is 25%. Taxable income, tax rates, and income taxes paid in Hoover's first two years of operation were as follows: \table [[2017, $50,000, 30%
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Lillian Farms reported a net operating loss of $240,000 for financial reporting and tax purposes in 2019. The enacted tax rate is 25 %. Taxable income, tax rates, and income taxes paid in Lillian's first two years of operation were as follows: 2017 $100,000..40% 2018 $60,000...25% Assume NOL is allowed to carryback for two years, the amount of net loss reported on the income statement for the year ended December 31, 2019 would be: a) $(180, 000). b) $(175,000). c) 9(165,000). d) $(155,000).
Candyland Property and Casualty Insurance Corporation reported a net operating loss of $220,000 for financial reporting and tax purposes in 2019. The enacted tax rate is 25%. Taxable income and tax rates in Candyland's first two years of operation were as follows: 2017 $40,000 30% 2018 $100,000 25% Assuming NOL carryback is allowed for companies up to 2 years, the amount of net loss reported on the income statement for the year ended December 31, 2019 would be: O $154,000 O $158,000 O $163,000 O $165,000
Wynn Farms reported a net operating loss of $180,000 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: TaxableIncome TaxRates Income Taxes Paid 2017 $ 80,000 20 % $ 16,000 2018 90,000 20 18,000 2019 160,000 25 40,000 2020 80,000 35 28,000 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 2021 income statement that reports the income tax benefit of the net operating loss.
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