The accounting income (loss) figures for Farah Corporation are as follows: 

2015............................$160,000 

2016..............................250,000 

2017................................80,000 

2018............................(160,000) 

2019............................(380,000) 

2020..............................130,000 

2021..............................145,000 

Accounting income (loss) and taxable income (loss) were the same for all years involved. Assume a 30% tax rate for 2015 and 2016, and a 25% tax rate for the remaining years. 

Instructions 

Prepare the journal entries for each of the years 2017 to 2021 to record income tax expense and the effects of the tax loss carrybacks and carryforwards, assuming Farah Corporation uses the carryback provision first. All income and losses relate to normal operations and it is more likely than not that the company will generate substantial taxable income in the future.