Recording NOL Carryback|Carryforward ABC Inc. reported taxable income for Year 1 through Year 6 as follows. tax loss carryforward benefit is more likely than not to be realized. Required two years (using the earlier year first) and carryforward indefinitely without an income limitation. - Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). \begin{tabular}{|c|c|c|c|c|} \hline & & & & \\ \hline \multirow[t]{3}{*}{ Dec. 31, Year 3} & Income Tax Refund Receivable & v & 25,000 & 0 \\ \hline & Income Tax Expense & v & 0 & 25,000 \\ \hline & Torecordincometaxexpense & & & \\ \hline \multirow[t]{4}{*}{ Dec. 31, Year 4} & Income Tax Refund Receivable & v & 62,500 & 0 \\ \hline & Deferred Tax Asset & v & 25,000 & 0 \\ \hline & Income Tax Payable & v & 0 & 62,500 \\ \hline & To record income tax expense & & & \\ \hline \multirow[t]{3}{*}{ Dec. 31, Year 5} & Income Tax Expense & v & 32,000 & 0 \\ \hline & Deferred Tax Asset & & 0 & 32,000 \\ \hline & To record income tax expense & & & \\ \hline \multirow[t]{3}{*}{ Dec. 31, Year 6} & Income Tax Expense & & 40,000 & 0 \\ \hline & Deferred Tax Asset & v & 0 & 40,000 \\ \hline & To record income tax expense & & & \\ \hline \end{tabular}