Wynn Sheet Metal reported a net operating loss of $160,000 for financial reporting and tax purposes in 2018.The enacted tax rate is 40%?

Question

Wynn Sheet Metal reported a net operating loss of $160,000 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 Income Tax Rates Income Taxes Paid

2014 $60,000 30% $18,000

2015 70,000 30 21,000

2016 80,000 40 32,000

2017 60,000 45 27,000

Answer 1

another homework cheater