Carla reported the following pretax financial income (loss) for the years 20152019.

2015		$235,000
2016		343,000
2017		98,000
2018		(511,000)	)
2019		176,000

Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 34% for 2015 and 2016, and 40% for 20172019. Assume the carryback provision is used first for net operating losses

A.) Prepare the journal entries for the years 20172019 to record income tax expense, income taxes payable (refundable), and the tax effects of the loss carryback and loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-fifth of the benefits of the loss carryforward will not be realized.

B.) Prepare the income tax section of the 2018 income statement beginning with the line Income (loss) before income taxes.