E19.23 nol Carryback and Carryforward, Valuation Account Versus No Valuation Account) 4 7 8 Sondgeroth Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. (Assume the carryback provision is used for a net operating loss.) Year Pretax Income (Loss) Tax Rate 2011 $110,000 2012 90,000 2013 (260,000) 2014 220,000 34% 34% 38% 38% The tax rates listed were all enacted by the beginning of 2011