Thcome statement for 2017 appear? e. What entry for income taxes should be recorded in 20207 f. How should the income tax expense section of the income statement for 2020 appear? E19.23 (LO 3) (NOL Carryforward, Valuation Account versus No Valuation Account) Spamela Hamderson Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Year Tax Rate 2018 2019 2020 2021 Pretax Income (Loss) $120,000 90,000 (280,000) 300,000 17% 17 19 19 The tax rates listed were all enacted by the beginning of 2018. ker Instructions a. Prepare the journal entries for the years 2018-2021 to record income tax expense (benefit) and in- come taxes payable (refundable) and the tax effects of the loss carryforward, assuming that at the end of 2020 the benefits of the loss carryforward are judged more likely than not to be realized in the future. b. Using the assumption in (a), prepare the income tax section of the 2020 income statement beginning with the line "Operating loss before income taxes." c. Prepare the journal entries for 2020 and 2021, assuming that based on the weight of available evi- dence, it is more likely than not that one-fourth of the benefits of the loss carryforward will not be realized d. Using the assumption in (c), prepare the income tax section of the 2020 income statement beginning with the line "Operating loss before income taxes." E19.24 (LO3) (NOL Carryforward, Valuation Account Needed) Beilman Inc. reports the follow- ing pretax income (loss) for both book and tax purposes. Pretax Income (Loss) Tax Rate