Recording Net Operating Loss Carryback

During Year $4,$ Lamb Inc. suffered a tax loss of $$(120,000).$ Lamb qualifies for a two$-$year loss carryback option for tax purposes, using the earliest year first and with no income restrictions. Taxable income for the last three years $($listed in chronological order$)$ follows: Year $1$: $$108,000$; Year $2$: $$96,000$; and Year $3$: $$36,000.$ The tax rate is $40\%$ for Year $3$ and Year $4,$ and $25\%$ for Year $1$ and Year $2.$ Prepare Lamb's entry for the loss carryback on December $31$ of Year $4.$