obac Company reported an operating loss of $129,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25% for 2021 and all future years. Assume that Tobac operates in an industry for which NOL carryback is allowed and elects a loss carryback. No valuation allowance is needed for any deferred tax assets. Taxable income, tax rates, and income taxes paid in Tobac's first four years of operations were as follows:     Taxable income Tax rates Taxes paid 2017 $ 27,000     30 % $ 8,100   2018 $ 32,000     30 % $ 9,600   2019 $ 39,000     35 % $ 13,650   2020 $ 37,000     40 % $ 14,800          Required: 1. Prepare a compound journal entry to record Tobac's tax provision for the year 2021. 2. Compute Tobac's net loss for 2021.

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Deferred Tax

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