n $2023,$ AC$3220$ Inc. reported a $$500,000$ loss for tax purposes. The tax rate is $25\%,$ and is likely to remain at this rate for the foreseeable future. AC$3220$ reports under IFRS. The following are the recent income amounts earned by AC$3220$ since $2023.$

Year

Income

$2019$

$200,000$

$2020$

$100,000$

$2021$

$100,000$

$2022$

$100,000$

$2023$

$(500,000)$

Management feels it is probable that there will be future taxable incomes against which the $2023$ loss could be applied.

Instructions

a$)$ Assuming that AC$3220$ takes advantage of the tax loss carryback provisions, what entries $($if any$)$ would be prepared in $2023$ to record the loss carryback?

b$)$ Assuming that AC$3220$ takes advantage of the tax loss carryback provisions, what entries $($if any$)$ would be prepared in $2023$ to record the loss carryforward?