During 2022, its first year of operations, Johnson Corporation reported an Operating Loss of $375,000 for financial reporting and tax purposes. The enacted tax rate is 20%.

3) Assume that 2022 is the companies fourth year of operations. Assume that in years 1, 2 and 3, Johnson and Net Income and taxable income of $100,000 each year. Also, assume the carryback provisions of the tax law are available to Johnson for its 2022 tax return. Tax rates are 20% for all 3 previous years.

Describe how Johnson would apply the Carryback Provisions of the tax law in words. You may use journal entries to help explain your answer, but it is not required.