Date Account Titles and Explanation 2020 Income Tax Refund Receivable Deferred Tax Asset (To recognize benefit of loss carryforward.) Benefit Due to Loss Carryback Benefit Due to Loss Carryforward (To record allowance.) 2021 Income Tax Expense Income Tax Payable Deferred Tax Asset (To record income taxes.) Allowance to Reduce Deferred Tax Asset to Expected Realiz Benefit Due to Loss Carryforward (To adjust allowance.) Debit Credit Sunland Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Pretax Income Year (Loss) Tax Rate 2018 $119,000 17 % 2019 109,000 17 % 2020 (226,000 ) 19 % 2021 300,000 19 %