Wynn Sheet Metal reported an operating loss of $190,000 for financial reporting and tax purposes in 2018. The enacted tax rate is 40%.
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Wynn Sheet Metal reported an operating loss of $190,000 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 $ 75,000   30 %   $ 22,500

2015   85,000   30       25,500

2016   95,000   40       38,000

2017   75,000   45       33,750  


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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