B. Net Operating Loss Carrot Inc. reports the following pretax income (loss) for both book and tax purposes. (Assume the carryback provision is used where possible for a net operating loss.)

Year Pretax Income (Loss) Tax Rate

2015 $100,000 40%

2016 80,000 40%

2017 (280,000) 35%

2018 120,000 35%

Required: Prepare the journal entries for the year 2017 to record income tax expense and income tax payable, and the tax effects of the loss carryback and loss carryforward.