3.Starlight reported the following pretax financial income (loss) for the years 2015-2019.

Pretax Income (Loss)

Tax Rate

2017 330,000 35%

2018 (60,000) 35%

2019 (800,000) 21%

2020 30,000 21%

Pretax financial income (loss) and taxable income (loss) were the same for all years involved.

a) Prepare the journal entries for the years 2018 to 2020 to record income tax expense and the effects of the net operating loss carryforwards. Additionally, assume that on December 31, 2019, based on the weight of available evidence, the company judged that more likely than not that one-fifth of the benefits of the loss carryforward will not be realized.