Austin Inc. reported the following pretax income (loss) and related tax rates during the years 20112017.

Year Pretax Income (Loss) Tax Rate

2011 $60,000 40%

2012 $45,000 40%

2013 $10,000 30%

2014 $(140,000) 30%

2015 $30,000 30%

2016 $60,000 30%

2017 $40,000 35%

Pretax financial income (loss) and taxable income (loss) were the same for all years since Austin began business.

The tax rates from 20132017 were enacted in 2013.

INSTRUCTIONS: Prepare the journal entries for the years 2014-2016 to record income taxes payable (refundable), income tax expense (benefit), and the effects of the loss carryback and carryforward. Assume loss carryforward in the year immediately follows the loss.