Problem: Wynn Farms reported a net operating loss of $152,000 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
|
$73,000
|
20%
|
$14,600
|
|
2018
|
83,000
|
20
|
16,600
|
|
2019
|
132,000
|
25
|
33,000
|
|
2020
|
73,000
|
40
|
29,200
|
Required:
Question 1: Prepare the journal entry to recognize the income tax benefit of the net operating loss. NOL carry backs 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.
Question 2: Show the lower portion of the 2021 income statement that reports the income tax benefit of the net operating loss.
Dealing with the academic task is quite an impossible task for students to precisely complete the academic task and to submit it within the stipulated time frame. Don't make it a bad academic experience and approach our professional Net Operating Loss Assignment Help tutors today and get it completed by the apt tutors.
Tags: Net Operating Loss Assignment Help, Net Operating Loss Homework Help, Net Operating Loss Coursework, Net Operating Loss Solved Assignments, Income Tax Benefit Assignment Help, Income Tax Benefit Homework Help