The pretax financial income (or loss) figures for Sunland Company are as follows.

2015$176,000

2016 243,000

201779,000

2018(176,000)

2019(390,000)

2020 118,000

202190,000

Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a25% tax rate for 2015 and 2016 and a20% tax rate for the remaining years.

 

Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforwards. All income and losses relate to normal operations. (In recording the benefits of a loss 

carryforward, assume that no valuation account is deemed necessary.)