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Intermediate accounting III Columbia CollegeWynn Sheet Metal reported a net operating loss of $136,000 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: TaxableIncome TaxRates Income Taxes Paid2014$78,000 20% $15,6002015 88,000 20 17,6002016 98,000 30 29,4002017 78,000 35 27,300Required:1. Prepare the journal entry to recognize the income tax benefit of the net operating loss. Wynn elects the carryback option.2. Show the lower portion of the 2018 income statement that reports the income tax benefit of the net operating loss. Prepare the journal entry to recognize the income tax benefit of the net operating loss. Wynn elects the carryback option. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field. Enter your answers in thousands and round your answers to 1 decimal place.)No Event General Journal Debit Credit1 1 Receivable—Income tax refund selected answer correct42.7 selected answer correct not attemptedIncome tax benefit—Net operating loss selected answer correct not attempted 42.7Show the lower portion of the 2018 income statement that reports the income tax benefit of the net operating loss. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands and round your answers to 1 decimal place.)