Accounting income or loss for Aberdeen Corporation follows:

Year 2	$180,000
Year 3	300,000
Year 4	100,000
Year 5	(200,000)
Year 6	(460,000)
Year 7	150,000
Year 8	176,000

For all years above, the accounting income was the same as the taxable income. The tax rate for Year 2 and Year 3 was 30%. The tax rate for Year 4 to Year 8 was 25%.

Instructions

Prepare the tax-related journal entries for Year 4 to Year 8. Aberdeen Corp. believes that it will be able to use any loss carryforward in future years. Aberdeen will apply the available carryback provisions to the earliest years first. Include your calculations.