E$19\mathrm{.}21($LO $3)($Carryforward of NOL, No Valuation Account, No Temporary Diff erences$)$ The pretax financial income $($or loss$)$ figures for Jenny Spangler Company are as follows.

$($THERE ARE NO PRETAX FINANCIAL INFORMATION ABOUT $2015$ AND $2016!)$

$2017$ $$80,000$

$2018(160,000)$

$2019(380,000)$

$2020120,000$

$2021100,000$

Pretax financial income $($or loss$)$ and taxable income $($loss$)$ were the same for all years involved. Assume a $25\%$ tax rate for $2015$ and $2016,$ and a $20\%$ tax rate for the remaining years.

Instructions

Prepare the journal entries for the years $2017$ to $2021$ to record income tax expense and the eff ects 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.$)$

Can someone explain to me why i use $25\%$ for year $2018$ and just explain this entire process so i can pass my exam LOL