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Wynn Sheet Metal reported an operating loss of $196,000 for financial reporting and tax purposes in...

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Accounting

Wynn Sheet Metal reported an operating loss of $196,000 forfinancial reporting and tax purposes in 2018. The enacted tax rateis 40%. Taxable income, tax rates, and income taxes paid in Wynn’sfirst four years of operation were as follows: Taxable Income TaxRates Income Taxes Paid 2014 $ 78,000 30 % $ 23,400 2015 88,000 3026,400 2016 98,000 40 39,200 2017 78,000 45 35,100 Required: 1.Complete the following table given below and prepare the journalentry to recognize the income tax benefit of the operating loss.Wynn elects the carryback option. 2. Show the lower portion of the2018 income statement that reports the income tax benefit of theoperating loss.

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