159 Homework Source: Keiso E 9-23 (LO3) (NOL Carry back and Carry forward, Valuation Account Needed) Meyer reported the following pretax financial income (loss) for the years 20X5-20xs. Year Pretax Income (Loss 20xS 20x6 20x7 20X8 $240,000 $350,000 $120,000 (S570,000) The enacted tax rate was 34% for 20X5 and 20X6 and 20% for 20X7 and later Instructions Prepare the journal entries for the year 20X8 only to record income tax expense (benefit), and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that onc-fifth of the benefits of the loss a. Prepare the income tax section of the 20X8 income statement beginning with the line "Income (loss) before income taxes." b. 20X8 Journal Entries (Make 2 entries) 20X8 Income Tax Section of Income Statement