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xercise 16-26(Algo) Net operating loss carryback and carryforward; financial statement effects [L016- Vynn...

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Accounting

xercise 16-26(Algo) Net operating loss carryback and carryforward; financial statement effects [L016-
Vynn Farms reported a net operating loss of $270,000 for financial reporting and tax purposes in 2024. The enacted tax rate is 25%.
axable income, tax rates, and income taxes paid in Wynn's 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
farm-related 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 2024 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 transaction/event, select "No journal entry required" in the first account field. Enter your answers in
whole dollars.
View transaction list
image

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