Walmart qualifies for the carry back option for net operating losses and elects to use it in 2020. Walmart expects its tax rate will remain 21% into the foreseeable future after 2021.

a. Prepare the income tax journal entry for 2020. No valuation account is need.

b. determine the net income or loss for 2020

c. Prepare the income taxes journal entry for 2021

Year 2018 2019 2020 2021 Pretax Financial Income (Loss) 50,000 120,000 (200,000) 300,000 Tax Rate 30% 25% 22% 21% Year 2018 2019 2020 2021 Pretax Financial Income (Loss) 50,000 120,000 (200,000) 300,000 Tax Rate 30% 25% 22% 21%