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Graham Corporation reported pre-tax income from operations in 2017 of $35,000 (the first year of operations). In 2018 the corporation experienced a $130,000 pre-tax loss

Graham Corporation reported pre-tax income from operations in 2017 of $35,000 (the first year of operations). In 2018 the corporation experienced a $130,000 pre-tax loss from operations. Future operations are highly uncertain. Assume an income tax rate of 38%. Graham has no temporary differences and has elected to carryback the loss. Required: Give the 2017 and 2018 income tax entries

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