E19.23B (LO 3) (NOL Carryforward, Valuation Account versus No Valuation Account) Public Wares Corporation reports the following pretax income (loss) for both financial reporting purposes and tax purposes. The tax rates listed were all enacted by the beginning of 2018, Year 2018 2019 2020 2021 Pretax Income (Loss) $265,000 (325,000) (75,000) 300,000 Tax Rate 20% 20% 22% 22% Instructions (a) Prepare the journal entries for the years 2018 through 2021 to record income tax expense (benefit) and income tax pay- able (refundable) and the tax effects of the loss carryforward, assuming that the benefits of any loss carryforwards are judged more likely than not to be realized in the future. (b) Prepare the income tax section of the 2020 income statement beginning with the line "Operating loss before income taxes."

E19.23B (L0 3) (NOL Carryforward, Valuation Account versus No Valuation Account) Public Wares Corporation reports the following pretax income (loss) for both financial reporting purposes and tax purposes. The tax rates listed were all enacted by Instructions (a) Prepare the journal entries for the years 2018 through 2021 to record income tax expense (bencfit) and income tax pay. able (refundable) and the lax effects of the loss carryforward, assuming that the benefits of any loss carryforwards are judged more likely than not to be realized in the future. (b) Prepare the income tax section of the 2020 income statement beginning with the line "Operating loss before income taxes