Question
In: Accounting
Wynn Sheet Metal reported an operating loss of $196,000 for financial reporting and tax purposes in...
Wynn Sheet Metal reported an operating loss of $196,000 for financial reporting and tax purposes in 2018. The enacted tax rate is 40%. 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 2014 $ 78,000 30 % $ 23,400 2015 88,000 30 26,400 2016 98,000 40 39,200 2017 78,000 45 35,100 Required: 1. Complete the following table given below and prepare the journal entry to recognize the income tax benefit of the operating loss. Wynn elects the carryback option. 2. Show the lower portion of the 2018 income statement that reports the income tax benefit of the operating loss.
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ekkarill92 answered 7 months agoRelated Solutions
Wynn Sheet Metal reported an operating loss of $172,000 for financial reporting and tax purposes in...
Wynn Sheet Metal reported an operating loss of $172,000 for
financial reporting and tax purposes in 2018. The enacted tax rate
is 40%. 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
2014 $ 66,000 30 % $ 19,800
2015 76,000 30% 22,800
2016 86,000 40% 34,400
2017 66,000 45% 29,700
Required:
1. Complete the following table given below and prepare the
journal entry...
Wynn Sheet Metal reported an operating loss of $202,000 for financial reporting and tax purposes in...
Wynn Sheet Metal reported an operating loss of $202,000 for
financial reporting and tax purposes in 2018. The enacted tax rate
is 40%. 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
2014
$
81,000
30
%
$
24,300
2015
91,000
30
27,300
2016
101,000
40
40,400
2017
81,000
45
36,450
Required:
1. Complete the following table given below and
prepare the journal entry...
Wynn Sheet Metal reported an operating loss of $200,000 for financial reporting and tax purposes in...
Wynn Sheet Metal reported an operating loss of $200,000 for
financial reporting and tax purposes in 2018. The enacted tax rate
is 40%. 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 2014 $ 80,000 30 % $ 24,000 2015 90,000 30
27,000 2016 100,000 40 40,000 2017 80,000 45 36,000 Required: 1.
Complete the following table given below and prepare the journal
entry...
Wynn Sheet Metal reported an operating loss of $202,000 for financial reporting and tax purposes in...
Wynn Sheet Metal reported an operating loss of $202,000 for
financial reporting and tax purposes in 2016. The enacted tax rate
is 40%. 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
2012
$
81,000
30
%
$
24,300
2013
91,000
30
27,300
2014
101,000
40
40,400
2015
81,000
45
36,450
Required:
1.
Complete...
Wynn Sheet Metal reported an operating loss of $204,000 for financial reporting and tax purposes in...
Wynn Sheet Metal reported an operating loss of $204,000 for
financial reporting and tax purposes in 2018. The enacted tax rate
is 40%. 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
2014
$
82,000
30
%
$
24,600
2015
92,000
30
27,600
2016
102,000
40
40,800
2017
82,000
45
36,900
Required:
1. Complete the following table given below and
prepare the journal entry...
Wynn Sheet Metal reported an operating loss of $194,000 for financial reporting and tax purposes in...
Wynn Sheet Metal reported an operating loss of $194,000 for
financial reporting and tax purposes in 2018. The enacted tax rate
is 40%. 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 2014 $ 77,000 30 % $ 23,100 2015 87,000 30
26,100 2016 97,000 40 38,800 2017 77,000 45 34,650 Required: 1.
Complete the following table given below and prepare the journal
entry...
Wynn Sheet Metal reported an operating loss of $198,000 for financial reporting and tax purposes in...
Wynn Sheet Metal reported an operating loss of $198,000 for
financial reporting and tax purposes in 2016. The enacted tax rate
is 40%. 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
2012
$
79,000
30
%
$
23,700
2013
89,000
30
26,700
2014
99,000
40
39,600
2015
79,000
45
35,550
Required:
1.
Complete...
Wynn Sheet Metal reported an operating loss of $178,000 for financial reporting and tax purposes in...
Wynn Sheet Metal reported an operating loss of $178,000 for
financial reporting and tax purposes in 2018. The enacted tax rate
is 40%. 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
2014
$
69,000
30
%
$
20,700
2015
79,000
30
23,700
2016
89,000
40
35,600
2017
69,000
45
31,050
Required:
1. Complete the following table given below and
prepare the journal entry...
Wynn Sheet Metal reported a net operating loss of $126,000 for financial reporting and tax purposes...
Wynn Sheet Metal reported a net operating loss of $126,000 for
financial reporting and tax purposes in 2018. The enacted tax rate
is 30%. 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
2014
$
73,000
20
%
$
14,600
2015
83,000
20
16,600
2016
93,000
30
27,900
2017
73,000
40
29,200
Required:
1. Prepare the journal entry to recognize the
income tax benefit...
Wynn Farms reported a net operating loss of $132,000 for financial reporting and tax purposes in...
Wynn Farms reported a net operating loss of $132,000 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 $ 68,000 25 % $ 17,000 2018 78,000 25
19,500 2019 112,000 25 28,000 2020 68,000 40 27,200
Prepare the journal entry to recognize the income tax
benefit of the net...
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