Netherland Co. reported a net operating loss of $450,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 30%. Taxable income, tax rates, and income taxes paid in Netherlands first four years of operation were as follows:

Taxable Income Tax Rates Income Taxes Paid

2017 $400,000 25% $100,000

2018 600,000 25% 150,000

2019 200,000 25% 50,000

2020 100,000 25% 25,000

Required: 1. NOL carrybacks are not allowed for most companies, except for property and casualty insurance companies as well as some farm-related businesses. Assume Netherland is one of those businesses. Please prepare journal entry to recognize its NOL carryback and carryforward in 2021. (3 Points)

2. Whats the net loss in 2021 after considering the tax benefits calculated from Requirement #1? (1 Point)

3. Assume Netherland is not one of those businesses which could carryback NOLs. Please prepare journal entry to recognize its NOL carryforward in 2021. (2 Points)