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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 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands. Leave no cell blank, enter "0" wherever applicable.)

      
     

2.

Show the lower portion of the 2016 income statement that reports the income tax benefit of the operating loss. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)

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Hi

Let me know in case you face any issue. Although format is not used. I have the best format:

ekkarill92 answered 1 year ago
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