The pretax financial income (or loss) figures for Dan Lynch Company are as follows.

2015.............................$160,000
2016...............................250,000
2017.................................80,000
2018.............................(160,000)
2019.............................(380,000)
2020...............................120,000
2021...............................100,000

Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 45% tax rate for 2015 and 2016, and a 20% tax rate for the remaining years.

Instructions

Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carrybacks and carryforwards assuming Dan Lynch Company uses the carryback provision. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.)