Homework Answers
Solution 1:
| Net Operating loss carryback | Amount | Rate of Tax | Tax | Recorded as |
| Carried back - 2017 | $0.0 | 30% | $0.00 | |
| Carried back - 2018 | $0.0 | 30% | $0.00 | |
| Carried back - 2019 | $80,000.0 | 25% | $20,000.00 | |
| Carried back - 2020 | $20,000.0 | 30% | $6,000.00 | |
| Total Carryback | $100,000.0 | $26,000.00 | Income tax benefit |
| Adjusting Journal Entries - Wynn Farm | |||
| Event | Particulars | Debit | Credit |
| 1 | Receivables - Income Tax Refund | $26,000.00 | |
| To Income tax expense | $26,000.00 | ||
| (Being income tax benefit due to loss carryback recorded) | |||
solution 2:
|
Income Statement - Wynn Farm For the year ended December 31, 2021 |
|
| Particulars | Amount |
| Operating loss before income tax | -$100,000.00 |
| Income tax benefit: | |
| Tax refund from loss carryback | $26,000.00 |
| Net Income (Loss) | -$74,000.00 |
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Wynn Farms reported a net operating loss of $100,000 for financial reporting and tax purposes in...
Wynn Farms reported a net operating loss of $100,000 for financial reporting and tax purposes in...
Wynn Farms reported a net operating loss of $100,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25%. 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 2017 $ 60,000 15 % $ 9,000 2018 70,000 15 10,500 2019 80,000 25 20,000 2020 60,000 30 18,000 Required: 1. Prepare the journal entry to recognize the income tax benefit of...
Wynn Farms reported a net operating loss of $240,000 for financial reporting and tax purposes in...
Wynn Farms reported a net operating loss of $240,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25%. Taxable income, tax rates, and income taxes paid in Wynn's first four years of operation were as follows: 2017 2018 2019 2020 Taxable Income $ 76,000 86,000 160,000 40,000 Tax Rates 30% 30 40 45 Income Taxes Paid $22,800 25,800 64,000 18,000 Required: 1. NOL carrybacks are not allowed for most companies, except for property and casualty...
Wynn Farms reported a net operating loss of $136.000 for financial reporting and tax purposes in...
Wynn Farms reported a net operating loss of $136.000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25%. Taxable income tax rates, and income taxes paid in Wynn's first four years of operation were as follows: Taxable Income $ 69, eee 79, eee 116.299 6 9,808 2017 2018 2919 2920 Tax Rates 20% 29 25 40 Income Taxes Paid $13,800 15,800 29. eee 27,600 $13,308 Required: 1. Prepare the journal entry to recognize the income...
Wynn Farms reported a net operating loss of $240,000 for financial reporting and tax purposes in...
Wynn Farms reported a net operating loss of $240,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25%. Taxable income tax rates, and income taxes paid in Wynn's first four years of operation were as follows: 2017 2018 2919 2920 Taxable Income $ 76, eee 86.293 160.09 4 . eee Tax Rates 38% 39 49 45 Income Taxes Paid $22,800 25,899 64, eee 18,000 Required: 1. NOL carrybacks are not allowed for most companies, except...
Wynn Farms reported a net operating loss of $225,000 for financial reporting and tax purposes in...
Wynn Farms reported a net operating loss of $225,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25%. 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 2017 $ 73,000 30 % $ 21,900 2018 83,000 30 24,900 2019 145,000 40 58,000 2020 40,000 45 18,000 Required: 1. NOL carrybacks are not allowed for most companies, except for property...
Wynn Farms reported a net operating loss of $185,000 for financial reporting and tax purposes In...
Wynn Farms reported a net operating loss of $185,000 for financial reporting and tax purposes In 2021. The enacted tax rate is 25%. Taxable income, tax rates, and income taxes paid In Wynn's first four years of operation were as follows: 2017 2018 2019 2020 Taxable Income $ 65,000 75,000 105,200 60,000 Tax Rates 30% 30 40 45 Income Taxes Paid $19,500 22,500 42,00 27,000 Required: 1. NOL carrybacks are not allowed for most companies, except for property and casualty...
Wynn Farms reported a net operating loss of $250,000 for financial reporting and tax purposes in...
Wynn Farms reported a net operating loss of $250,000 for
financial reporting and tax purposes in 2021. The enacted tax rate
is 25%. 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
2017
$
78,000
30
%
$
23,400
2018
88,000
30
26,400
2019
170,000
40
68,000
2020
40,000
45
18,000
Required:
1. NOL carrybacks are not allowed for most
companies, except for property...
Wynn Sheet Metal reported a net operating loss of $108,000 for financial reporting and tax purposes...
Wynn Sheet Metal reported a net operating loss of $108,000 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 Tax Income Rates 2014 $64,000 3ex 2015 74,000 30 2016 84,800 40 2017 64,000 45 Income Taxes Paid $19, 280 22,200 33,600 28,800 Required: 1. Prepare the journal entry to recognize the income tax benefit of the...
Wynn Sheet Metal reported a net operating loss of $112,000 for financial reporting and tax purpos...
Wynn Sheet Metal reported a net operating loss of $112,000 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 Tax Income Taxes Paid $19,800 22,800 34,400 29,700 Income Rates 2014 $66,000 30% 2015 76,000 30 2016 2017 86,000 40 66,000 45 Required 1. Prepare the journal entry to recognize the income tax benefit of the net...
Wynn Sheet Metal reported a net operating loss of $138,000 for financial reporting and tax purposes...
Wynn Sheet Metal reported a net operating loss of $138,000 for financial reporting and tax purposes in 2018. The enacted tax rate is 30%. 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 $ 79,000 20 % $ 15,800 2015 89,000 20 17,800 2016 99,000 30 29,700 2017 79,000 40 31,600 Required: 1. Prepare the journal entry to recognize the income tax benefit...
Wynn Farms reported a net operating loss of $240,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25%. Taxable income, tax rates, and income taxes paid in Wynn's first four years of operation were as follows: 2017 2018 2019 2020 Taxable Income $ 76,000 86,000 160,000 40,000 Tax Rates 30% 30 40 45 Income Taxes Paid $22,800 25,800 64,000 18,000 Required: 1. NOL carrybacks are not allowed for most companies, except for property and casualty...
Wynn Farms reported a net operating loss of $136.000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25%. Taxable income tax rates, and income taxes paid in Wynn's first four years of operation were as follows: Taxable Income $ 69, eee 79, eee 116.299 6 9,808 2017 2018 2919 2920 Tax Rates 20% 29 25 40 Income Taxes Paid $13,800 15,800 29. eee 27,600 $13,308 Required: 1. Prepare the journal entry to recognize the income...
Wynn Farms reported a net operating loss of $240,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25%. Taxable income tax rates, and income taxes paid in Wynn's first four years of operation were as follows: 2017 2018 2919 2920 Taxable Income $ 76, eee 86.293 160.09 4 . eee Tax Rates 38% 39 49 45 Income Taxes Paid $22,800 25,899 64, eee 18,000 Required: 1. NOL carrybacks are not allowed for most companies, except...
Wynn Farms reported a net operating loss of $185,000 for financial reporting and tax purposes In 2021. The enacted tax rate is 25%. Taxable income, tax rates, and income taxes paid In Wynn's first four years of operation were as follows: 2017 2018 2019 2020 Taxable Income $ 65,000 75,000 105,200 60,000 Tax Rates 30% 30 40 45 Income Taxes Paid $19,500 22,500 42,00 27,000 Required: 1. NOL carrybacks are not allowed for most companies, except for property and casualty...
Wynn Farms reported a net operating loss of $250,000 for
financial reporting and tax purposes in 2021. The enacted tax rate
is 25%. 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
2017
$
78,000
30
%
$
23,400
2018
88,000
30
26,400
2019
170,000
40
68,000
2020
40,000
45
18,000
Required:
1. NOL carrybacks are not allowed for most
companies, except for property...
Wynn Sheet Metal reported a net operating loss of $108,000 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 Tax Income Rates 2014 $64,000 3ex 2015 74,000 30 2016 84,800 40 2017 64,000 45 Income Taxes Paid $19, 280 22,200 33,600 28,800 Required: 1. Prepare the journal entry to recognize the income tax benefit of the...
Wynn Sheet Metal reported a net operating loss of $112,000 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 Tax Income Taxes Paid $19,800 22,800 34,400 29,700 Income Rates 2014 $66,000 30% 2015 76,000 30 2016 2017 86,000 40 66,000 45 Required 1. Prepare the journal entry to recognize the income tax benefit of the net...
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