Shamrock Inc. reports the following pretax income (loss) for both book and tax purposes. (Assume the carryback provision is used where possible for a net operating loss.)

Year pretax income(loss) tax rate

2015 124000 40% 2016 86,000 40% 2017 (291,000) 45% 2018 126,000 45%

Prepare the journal entries for years 20152018 to record income tax expense (benefit) and income taxes payable (refundable), and the tax effects of the loss carryback and 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.

2015 Income Tax Expense 49600 Income Tax Payable 49600 2016 Income Tax Expense 34400 Income Tax Payable 34400 2017 Income Tax Refund Receivable 84000 Deferred Tax Asset Benefit Due to Loss Carryback 84000 Benefit Due to Loss Carryforward (To record refund.) Benefit Due to Loss Carryback Allowance to Reduce Deferred Tax Asset to Expected (To record allowance.) 2018 Income Tax Expense 56700 Income Tax Payable Deferred Tax Asset (To record income taxes.) Allowance to Reduce Deferred Tax Asset to Expect Benefit Due to Loss Carryforward