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	117500	42%
2013	95000	42%
2014	(242500)	46%
2015	129200	46%

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

a. 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.

b. Prepare the income tax section of the 2014 income statement beginning with the line Operating loss before income taxes.

c. Prepare the income tax section of the 2015 income statement beginning with the line Income before income taxes.