Lenova Company experienced a net operating loss of $654,000 in 2015. The company reported taxable income of $543,000 in 2013 and $321,000 in 2014. The tax rate for all years is 35%. Assuming the company uses the carryback provisions for the net operating loss, prepare the following for the year of the loss:

a) The necessary journal entry to record the NOL carryback.

b) A partial income statement beginning with the net loss before benefit.