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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 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 2 years ago
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