The pretax accounting income $($loss$)$ for the Katlyn Cascayan Company is as follows for the years indicated:

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Fiscal

Year

Pretax

Accounting Income

Tax Rate

$20$X$2$

$ $275,000$

$30\mathrm{.}0\%$

$20$X$3$

$225,000$

$30\mathrm{.}0\%$

$20$X$4$

$100,000$

$35\mathrm{.}0\%$

$20$X$5$

$150,000$

$35\mathrm{.}0\%$

$20$X$6$

$200,000$

$40\mathrm{.}0\%$

$20$X$7$

$(150,000)$

$40\mathrm{.}0\%$

$20$X$8$

$(600,000)$

$45\mathrm{.}0\%$

$20$X$9$

$750,000$

$50\mathrm{.}0\%$

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$20$X$2$ was Katlyn Cascayan$$s first year of operations. There are no other differences between pretax accounting income and taxable income for the years indicated. Katlyn Cascayan elects the loss carryback option.

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Required:

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Prepare the journal entries for the years $20$X$8$ and $20$X$9$ to record income tax expense $($benefit$)$ and income tax payable $($refundable$)$ and the tax effect of the loss carryback and carryforward assuming that at the end of $20$X$8$ the benefits of the loss carryforwards are judged more likely than not to be realized in the future.

Using the assumption in requirement #$1$ above prepare the Income Tax section of the $20$X$8$ and $20$X$9$ income statement beginning with the line Income$/$Loss before Income Tax Expense.

Using the assumption in requirement #$3$ above prepare the Income tax section of the $20$X$8$ and $20$X$9$ income statement beginning with the line Income$/$Loss before Income Tax Expense.