In 2012, P&P had a net income of $10,000, and in 2013 a net operating loss of $50,000, and in 2014 reported a net income of $70,000. Assume a tax rate of 20% for all years presented.

a) Prepare the entry that P&P should make in 2013.

b) Prepare an entry for 2014 to record the effect of the net operating loss from 2013.

Do not copy from chegg.