Gabby's Gift Shops Limited provided the following income (loss) information for the first five years of its operations. Gabby does not have any GAAP (Book) - Tax differences so that reported income per books is equal to taxable income on the tax returns. Year Income (Loss) Tax Rate 1 $130,000 40% 2 40,000 35% 3 (380,000) 30% 4 5. 150,000 30% 200,000 30% REQUIRED: (Do not consider the temporary provisions under the CARES Act) A. Assuming that Gabby is subject to the Federal NOL Rules, prepare the journal entries to account for income taxes in Years 3, 4 and 5 and determine the amount of the net loss after tax in Year 3. Gabby's management indicated that it is more likely than not that all the future tax benefits will be recovered. B. Assume that Gabby is filing in a state with tax laws that permits a three-year carryback and a five-year carryforward with no income limitations, prepare the journal entries to account for income taxes in Years 3,4 and 5 and determine the amount of the net loss after tax in Year 3. Gabby's management indicated that it is more likely than not that all the future tax benefits will be recovered. C. Repeat Part (b) for Years 3 and 4 ONLY. but now assume that only $140,000 of future taxable income is expected. D. Using the information provided in Part (c), compute Gabby's Effective (Actual) Tax Rate and prepare the footnote reconciliation to reconcile the Federal Tax Rate to the Effective (Actual) Tax Rate in both dollars and percentages.