(Loss Carryback and Carryforward) Alliance Inc. reports the following incomes (losses) for both book and tax purposes (assume the carryback provision is used where possible):

Year Accounting Income (Loss) Tax Rate

2020 $130,000 25%

2021 105,000 25%

2022 (305,000) 30%

2023 50,000 30%

The tax rates listed were all enacted by the beginning of 2020. Instructions

Prepare the journal entries for each of the years 2020 to 2023 to record income taxes, assuming at December 31, 2022, that it was more likely than not that the company would not be able to benefit from the remaining losses available to carry forward. Prepare the income tax section of the income statements for each of the years 2020 to 2023, beginning with the line Income (loss) before income tax.