MArshmallow Company operates since 2006. The history of taxable income are shown below:

Year Taxable Income Tax Rate 2014 $10,000 20% 2015 20,000 25% 2016 35,000 30% 2017 40,000 35% 2018 (110,000) 38% 2019 15,000 40% 2020 60,000 40%

Required : Knowing that the Tax reporting rules allows a Carryback and Carryforward Option for Marshmallow Co., explain which years are involved in this option, which years not and the status of taxable income and tax expense for each year affected by the carryback and carryforward . Support your answer with numbers and calculations.