Loss carrybacks and carryforwards I have an answer, but I am not sure how to solve for year 2013. There is equasion like this ($399,600 - $87,500) x 35% = $109,235. Where this $399,600 comes from? What tax years I have to add or subtruct?

The pretax financial income (or loss) figures for Jenny Spangler Company are as follows:

2009		$174,200
2010		265,800
2011		87,500
2012		(174,200	)
2013		(399,600	)
2014		138,700
2015		115,400

Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 40% tax rate for 2009 and 2010 and a 35% tax rate for the remaining years. Prepare the journal entries for the years 2011 to 2015 to record income tax expense and the effects of the net operating loss carrybacks and carryforwards assuming Jenny Spangler Company uses the carryback provision. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.)

2011 (db) Income Tax Expense (cr) Income Tax Payable

$87,500 x 35% = $30,625 30,625 30,625

2012 (db) Income Tax Refund Receivable (cr) Income Tax Refund due to loss carryback

$174,200 x 40% = $69,680 69,680 69,680

2013 (db) Income Tax Refund Receivable (cr) Income Tax Refund

$87,500 x 35% = $30,625 30,625 30,625

2013 (db) Deferred Tax Asset (cr) Income Tax Refund

($399,600 - $87,500) x 35% = $109,235 109,235 109,235

2014 (db)Income Tax Expenses (cr) Deferred Tax Asset

$138,700 x 35% = $48,545 48,545 48,545