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Beilman Inc. reports the following pretax income (loss) for both book and tax purposes. (Assume the carryback provision is used where possible for a net

Beilman Inc. reports the following pretax income (loss) for both book and tax purposes. (Assume the carryback provision is used where possible for a net operating loss.)

Year

Pretax Income (Loss)

Tax Rate

2012 $100,000 42 %
2013 95,000 42 %
2014 (252,500 ) 46 %
2015 125,200 46 %

The tax rates listed were all enacted by the beginning of 2012.

Prepare the journal entries for years 20122015 to record income tax expense (benefit) and income tax payable (refundable), and the tax effects of the loss carryback and 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.

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