Novak Inc. reports the following pretax income (loss) for both book and tax purposes.

Year		Pretax Income (Loss)			Tax Rate
2018		$123,000			20	%
2019		98,000			20	%
2020		(86,000)			25	%
2021		110,000			25	%

The tax rates listed were all enacted by the beginning of 2018.

Prepare the journal entries for years 2018-2021 to record income tax expense (benefit) and income taxes payable, and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-half of the benefits of the loss carryforward will not be realized. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 2018 Income Tax Expense 24600 Income Tax Payable 24600 2019 Income Tax Expense 19600 Income Tax Payable 19600 2020 Income Tax Expense 21500 Deferred Tax Liability 21500 (To record income taxes.) Deferred Tax Liability 21500 Allowance to Reduce Deferred Tax Asset to Expected Rea 21500 (To record allowance.) 2021 Income Tax Expense 27500 Income Tax Payable Deferred Tax Asset (To record income taxes.) Allowance to Reduce Deferred Tax Asset to Expected Realiz 3000 Income Tax Expense 3000 (To adjust allowance.)