Meyer reported the following pretax financial income (loss) for the years 2020–2022. 2020 $120,000 2021 (150,000)...

Meyer reported the following pretax financial income (loss) for the years 2020–2022. 2020 $120,000 2021 (150,000) 2022 180,000 Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 20% for 2020–2022. Instructions a. Prepare the journal entries for the years 2020–2022 to record income tax expense, income taxes payable, and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-fifth of the benefits of the loss carryforward will not be realized.

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Do we need an allowance journal entry for the years 2021 and 2022 to record the NOL Carryforward benefit?

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