Phlash Photo Labs, Ltd. provided you with the following information for the three years ended December 31.

Required
a. Assuming no book- tax differences and no uncertainty regarding the realization of the tax benefits of the net operating loss carry forward, prepare the journal entry to record the tax expense for each of the three years presented above. The company always elects the carry back/carry forward option. Future tax rates are expected to remain unchanged.
b. Prepare a partial income statement for year 3.

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Income (Loss) Before Tax Tax Rate 34% 25% 40% Year $120,000 70,000 280,000)