Sharp Ltd (SL) began operations in 2011, manufacturing flutes. In the first 4 years of operations, they were taxable however in their fifth year of operation (2015), they had a loss due to significant problems with the materials they had purchased to manufacture the flutes. Prior to 2015, the taxable incomes and tax rates reported by SL were as follows: Taxable income Tax rate 20% $50,000 2011 $20,000 2012 30% 25% 2013 5,000 $20,000 2014 28% In 2015, the company had a loss on the Statement of Comprehensive income in the amount of $200,000. Included in this loss was an amount of dividends received by SL in the amount of $20,000 that were tax free. There are no temporary differences in either year, as the company does not have any fixed assets as it leases from a related company all manufacturing equipment required to manufacture the flutes. The tax rate in 2015 is 25% Company management has determined in 2015 that they will carry back the loss to the extent possible under the Income Tax Act and recover taxes paid in prior years. The remaining loss, management feels will be able to be used in the carry forward period, so the company makes the decision to book the deferred taxes associated with the loss carry forward. There are no other temporary or timing differences in 2015. Part A Required: Prepare the journal entry for 2015 to record the loss carry back and the recognition of the loss carry forward. A deferred tax table is attached for use in this question if you wish!. (8