E$18\mathrm{.}24($LO $3)($NOL Carryforward, Valuation Account Needed$)$ Beilman Inc. reports the following pretax income $($loss$)$ for both book and tax purposes.

The tax rates listed were all enacted by the beginning of $2023.$

Instructions

Prepare the journal entries for years $2023-2026$ to record income tax expense $($benefit$)$ and income taxes payable $($refundable$),$ 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$-$half of the benefits of the loss carryforward will not be realized.

Prepare the income tax section of the $2025$ income statement beginning with the line "Operating loss before income taxes."

Prepare the income tax section of the $2026$ income statement beginning with the line "Income before income taxes."