1. Stuart Inc. has no temporary or permanent differences. For the year ended 20X7, Stuart had an accounting and taxable loss of $300,000. Prior years'aco taxable income are as follows: Tax rate 20X3 Accounting and taxable income (loss) $80,000 $105,000 $160,000 $75,000 ($300,000) 25% 27% 20X4 2005 20X6 28% 30% 20X7 29% Required Consider each of the two separate scenarios: a) Assume Stuart wants to maximize its refund of prior years' taxes. Prepare the journal entries to recognize and measure the tax loss for 20X7. b) Assume Stuart wants to apply the tax loss to the earliest years possible. Prepare the journal entries to recognize and measure the tax loss for 20X7