Condensed pretax income statements of Bixler Corporation for the $$rst four years of operations follow.

Year $1$ Year $2$ Year $3$ Year $4$

Revenues $$125,000$ $$155,000$ $$180,000$ $$250,000$

Expenses $$120,000$ $$195,000$ $$160,000$ $$200,000$

Pretax income $($loss$)$ $$5,000$ $$(40,000)$ $$20,000$ $$50,000$

There are no temporary di$$erences other than those created by tax loss carryforwards. The income tax rate is $25\%.$ Assume that future income is highly uncertain at the end of each year, so a valuation allowance is needed for any recognized deferred tax asset.

a$.$ Provide entries to record the NOL income tax e$$ects for each year.

b$.$ Prepare summarized income statements for Year $1$ through Year $4($including income tax expense$).$