Prepare the journal entry to recognize the income tax

Reference no: EM13480049

Operating loss carryback and carryforward
(This exercise is based on the situation described in E 16-21, modified to include a carryforward in addition to a carryback.)
Wynn Sheet Metal reported an operating loss of $160,000 for financial reporting and tax purposes in 2013. 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:

Required:

1.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 2013 income statement that reports the income tax benefit of the operating loss.

Reference no: EM13480049

Questions Cloud

Matt company uses a standard cost system information for : 1.ideal standards do not allow for machine breakdowns and other normal inefficiencies. true false2. jeffs corporation

The manufacturing overhead budget at mahapatra corporation : the manufacturing overhead budget at mahapatra corporation is based on budgeted direct labor hours. the direct labor

Determine the statistical significance of an equation : determine the statistical significance of an equation. given the following information test the slope of the equation

Veronica tanner the president of tanner enterprises is : veronica tanner the president of tanner enterprises is considering two investment opportuni- ties. because of limited

Prepare the journal entry to recognize the income tax : operating loss carryback and carryforwardthis exercise is based on the situation described in e 16-21 modified to

Louis gallo owns a small retail ice cream parlor he is : louis gallo owns a small retail ice cream parlor. he is considering expanding the business and has identified two

Exercise 16-2 determining the present value of a lump-sum : exercise 16-2 determining the present value of a lump-sum future cash receipt stan sweeney turned 20 years old today.

For the fiscal year ended june 30 2012 calculate the : long-term debtnbspnbspnbspnotes payable 101089000nbspnbspnbsp8 convertible bonds payable5185000nbspnbspnbsp10 bonds

Arrow enterprises uses a standard costing system the : arrow enterprises uses a standard costing system. the standard cost sheet for product no. 549 follows. direct materials

User Account

All Pages