The Garvey Corporation, a C corporation, during its first five years of operation, reported the following taxable incomes (losses):

The Garvey Corporation, a C corporation, during its first five years of operation, reported the following taxable incomes (losses): Year Taxable Income Effective Tax Rate 1 $ 60,000 25 % 2 20,000 20 3 (90,000) - 4 30,000 15 5 (40,000) 18 Required:a. Explain the net operating loss provisions of the tax code as they would relate to the Garvey Corporation.b. Determine the tax liability for the Garvey Corporation for years one and two.c. Determine the income tax refund that Garvey Corporation would realize in year three, assuming the corporation elected to use the carryback provision for its net operating loss. d. Determine the required income tax payments for year four. e. Determine the income tax liability (refund) realized in year five.f. If the Garvey Corporation believes its business is about to “take off” and that future incomes will exceed all previous levels, resulting in higher tax rates, would you advise Garvey Corporation to forgo the carryback provision for its year five net operating loss? Why or why not?