Meyer reported the following pretax financial income (loss) for the years 20122016.

2012		$240,700
2013		358,000
2014		120,000
2015		(577,000	)
2016		175,200

Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 36% for 2012 and 2013, and 42% for 20142016. Assume the carryback provision is used first for net operating losses.

Prepare the journal entries for the years 20142016 to record income tax expense, income taxes payable (refundable), and the tax effects of the loss carryback and loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-fifth of the benefits of the loss carryforward will not be realized.

Prepare the income tax section of the 2015 income statement beginning with the line Income (loss) before income taxes..