Novak Inc. reports the following incomes (losses) for both book and tax purposes (assume the carryback provision is used where possible):

		Accounting
		Income
Year		(Loss)			Tax Rate
2017		$139,000			25	%
2018		113,000			25	%
2019		(322,000	)		30	%
2020		48,000			30	%

The tax rates listed were all enacted by the beginning of 2017.Prepare the journal entries for each of the years 2017 to 2020 to record income taxes, assuming at December 31, 2019, that it was more likely than not that the company would not be able to benefit from the remaining losses available to carry forward. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
2017	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
2018	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
2019	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
2020	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

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Prepare the income tax section of the income statements for each of the years 2017 to 2020, beginning with the line Income (loss) before income tax.. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter 0 for amounts.)

Novak Inc. (Partial) Income Statements choose the accounting period For the Year Ended December 31For the Month Ended December 31December 31
2017
select an income statement item Income Tax Expense - DeferredDeferred Tax LiabilityNet Income / (Loss)Income / (Loss) Before Income TaxDeferred Tax AssetCurrent Income Tax Benefit due to Loss Carry backIncome Tax Expense - Current		$enter a dollar amount
select an income statement item Income Tax Expense - DeferredNet Income / (Loss)Deferred Tax LiabilityCurrent Income Tax Benefit due to Loss Carry backIncome / (Loss) Before Income TaxIncome Tax Expense - CurrentDeferred Tax Asset		enter a dollar amount
select a closing name for this statement Current Income Tax Benefit due to Loss Carry backIncome / (Loss) Before Income TaxIncome Tax Expense - CurrentDeferred Tax AssetNet Income / (Loss)Income Tax Expense - DeferredDeferred Tax Liability		$enter a total net income or loss amount

2018
select an income statement item Current Income Tax Benefit due to Loss Carry backIncome Tax Expense-CurrentIncome Tax Expense-DeferredDeferred Tax AssetNet Income / (Loss)Deferred Tax LiabilityIncome / (Loss) Before Income Tax		$enter a dollar amount
select an income statement item Income / (Loss) Before Income TaxCurrent Income Tax Benefit due to Loss Carry backDeferred Tax AssetIncome Tax Expense - DeferredDeferred Tax LiabilityIncome Tax Expense - CurrentNet Income / (Loss)		enter a dollar amount
select a closing name for this statement Income Tax Expense - CurrentIncome / (Loss) Before Income TaxDeferred Tax AssetCurrent Income Tax Benefit due to Loss Carry backDeferred Tax LiabilityNet Income / (Loss)Income Tax Expense - Deferred		$enter a total net income or loss amount

2019
select an income statement item Current Income Tax Benefit due to Loss Carry backNet Income / (Loss)Income / (Loss) Before Income TaxIncome Tax Expense - DeferredDeferred Tax AssetDeferred Tax LiabilityIncome Tax Expense - Current		$enter a dollar amount
select an income statement item Deferred Tax LiabilityCurrent Income Tax Benefit due to Loss Carry backDeferred Tax AssetNet Income / (Loss)Income / (Loss) Before Income TaxIncome Tax Expense - CurrentIncome Tax Expense - Deferred		enter a dollar amount
select a closing name for this statement Deferred Tax LiabilityNet Income / (Loss)Current Income Tax Benefit due to Loss Carry backIncome / (Loss) Before Income TaxIncome Tax Expense - DeferredIncome Tax Expense - CurrentDeferred Tax Asset		$enter a total net income or loss amount

2020
select an income statement tiem Income / (Loss) Before Income TaxIncome Tax Expense - CurrentDeferred Tax LiabilityIncome Tax Expense - DeferredCurrent Income Tax Benefit due to Loss Carry backNet Income / (Loss)Deferred Tax Asset		$enter a dollar amount
select an income statement tiem Current Income Tax Benefit due to Loss Carry backDeferred Tax AssetIncome Tax Expense - CurrentNet Income / (Loss)Income Tax Expense - DeferredDeferred Tax LiabilityIncome / (Loss) Before Income Tax		enter a dollar amount
select a closing name for this statement Income Tax Expense - DeferredDeferred Tax AssetIncome / (Loss) Before Income TaxCurrent Income Tax Benefit due to Loss Carry backDeferred Tax LiabilityIncome Tax Expense - CurrentNet Income / (Loss)		$enter a total net income or loss amount

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