Use the information for Kyle Inc. given in BE18.16. Assume now that Kyle earns taxable income of $25,000 in 2021 and that at the end of 2021 there is still too much uncertainty to recognize a deferred tax asset. Prepare all the journal entries that are necessary at the end of 2021 assuming 

(a) That Kyle does not use a valuation allowance account, 

(b) That Kyle does use a valuation allowance account. 

Data From BE18.16.

Kyle Inc. incurred a net operating loss of $580,000 in 2020. Combined income for 2017, 2018, and 2019 was $460,000. The tax rate for all years is 30%. Prepare the journal entries to record the benefits of the carryback and the carryforward, assuming it is more likely than not that the benefits of the loss carryforward will be realized.