Flavio Photo Labs, Ltd. provided you with the following information for the three years ended December 31st.

Income (Loss)
Year	Before Tax		Tax Rate
1	$140,000		35%
2	74,000		26%
3	(286,000)		41%

Requirements

	A. Assuming no book-tax differences and no uncertainty regarding the realization of the tax benefits of the net operating loss carryforward, prepare the journal entry to record the tax expense for each of the three years presented above. The company always elects the carryback/carryforward option. Future tax rates are expected to remain unchanged.
B.	Prepare a partial income statement for year 3.

Requirement a. Assuming no book-tax differences and no uncertainty regarding the realization of the tax benefits of the net operating loss carryforward, prepare the journal entry to record the tax expense for each of the three years presented above. The company always elects the carryback/carryforward option. Future tax rates are expected to remain unchanged. (Record debits first, then credits. Exclude explanations from any journal entries.)

Begin by preparing the journal entry for year 1.