Landmark Corp. started operations in 20X6. The statements of comprehensive income for the first four...
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Landmark Corp. started operations in 20X6. The statements of comprehensive income for the first four years of operations reflected the following pre-tax amounts:
There are no temporary differences other than those created by income tax losses. Landmark has had a constant income tax rate of 40% for all four years.
Required: 1. Give the entries to record income tax expense for each year, assuming that management has assessed that use of the loss carryforwards is probable. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Account Names:
20X4 20X5 20X6 20x7 $132,000 $(320,000) $36,000 $56,000 Pre-tax earnings (loss) X: Record the entry for income tax expense payable. 2 Record the entry for income tax recoverable and deferred income tax asset for unrecovered losses. 3 Record the entry for income tax recoverable from deferred income tax asset. 4 Record the entry for income tax recoverable from deferred income tax asset. Income tax expense Income tax payable Income tax receivable Long term liability Provisions Current asset Current Liability Deferred income tax asset Deferred income tax liability Income tax expense
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