xercise Algo Net operating loss carryback and carryforward; financial statement effects L
Vynn Farms reported a net operating loss of $ for financial reporting and tax purposes in The enacted tax rate is
axable income, tax rates, and income taxes paid in Wynns first four years of operation were as follows:
lequired:
NOL carrybacks are not allowed for most companies, except for property and casualty insurance companies as well as some
farmrelated businesses. Assume Wynn is one of those businesses. Complete the table given below and prepare the journal
entry to recognize the income tax benefit of the net operating loss.
Show the lower portion of the income statement that reports the income tax benefit of the net operating loss.
Complete this question by entering your answers in the tabs below.
Prepare the journal entry to recognize the income tax benefit of the net operating loss.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field. Enter your answers in
whole dollars.
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