Windsor 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		$128,000			40	%
2016		96,000			40	%
2017		(285,000	)		45	%
2018		116,000			45	%

The tax rates listed were all enacted by the beginning of 2015.

Date Account Titles and Explanation Debit Credit 2015 Income Tax Expense 51200 Income Tax Payable 51200 2016 Income Tax Expense 38400 Income Tax Payable 38400 2017 Income Tax Refund Receivable 89600 Deferred Tax Asset 27450 Benefit Due to Loss Carryback 89600 Benefit Due to Loss Carryforward 27450 (To record refund.) Benefit Due to Loss Carryforward 13725 Allowance to Reduce Deferred Tax Asset to Expect 13725 (To record allowance.) 2018 Income Tax Expense 52200 Income Tax Payable 24750 27450 Deferred Tax Asset (To record income taxes.) Allowance to Reduce Deferred Tax Asset to Expected 13725 Benefit Due to Loss Carryforward 13725 (To adjust allowance.) Prepare the income tax section of the 2017 income statement beginning with the line "Operating loss before income taxes." Windsor Inc. Income Statement (Partial) For the Year Ended December 31, 2017 Operating Loss before Income Taxes -285000 Income Tax Benefit Benefit Due to Loss Carryback 89600 Benefit Due to Loss Carryforward 27450 X 117050 X Net Income / (Loss) -167950 (c) Prepare the income tax section of the 2018 income statement beginning with the line "Income before income taxes." Windsor Inc. Income Statement (Partial) $ Date Account Titles and Explanation Debit Credit 2015 Income Tax Expense 51200 Income Tax Payable 51200 2016 Income Tax Expense 38400 Income Tax Payable 38400 2017 Income Tax Refund Receivable 89600 Deferred Tax Asset 27450 Benefit Due to Loss Carryback 89600 Benefit Due to Loss Carryforward 27450 (To record refund.) Benefit Due to Loss Carryforward 13725 Allowance to Reduce Deferred Tax Asset to Expect 13725 (To record allowance.) 2018 Income Tax Expense 52200 Income Tax Payable 24750 27450 Deferred Tax Asset (To record income taxes.) Allowance to Reduce Deferred Tax Asset to Expected 13725 Benefit Due to Loss Carryforward 13725 (To adjust allowance.) Prepare the income tax section of the 2017 income statement beginning with the line "Operating loss before income taxes." Windsor Inc. Income Statement (Partial) For the Year Ended December 31, 2017 Operating Loss before Income Taxes -285000 Income Tax Benefit Benefit Due to Loss Carryback 89600 Benefit Due to Loss Carryforward 27450 X 117050 X Net Income / (Loss) -167950 (c) Prepare the income tax section of the 2018 income statement beginning with the line "Income before income taxes." Windsor Inc. Income Statement (Partial) $