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Nueve Ltd. had the following pre-tax earnings and losses: Year 20x3 20x4 20x5 20X6 20x7 20x8 20x9 Pre-tax Earnings (Loss) $ 330,000 165,000 540,000 660,000 (3,330,000) 375,000 915,000 Tax Rate 34% 34 34 36 36 36 40 The tax rates are those effective for the year indicated. The rates were enacted the year in which they became effective Taxable income (loss) was equal to accounting earnings (loss) in each year, Required: 1. Prepare the entry to record income tax expense for 20x7. At the end of 20x7. management estimates it is probable Nueve will utilize only $225,000 of the loss carryforward (if no entry is required for a transaction/event, select "No Journal entry required in the first account field.) Required: 1. Prepare the entry to record income tax expense for 20x7. At the end of 20X7, management estimates it is probable Nueve will utilize only $225,000 of the loss carryforward. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry for income expense and loss of carryforward Note: Enter debits before credits obic Date 20x7 Credit General Journal No journal entry required 2. Prepare the entry to record income tax expense for 20x8 and 20X9. At the end of 20x8, management estimates it is probable Nueve will utilize the entire loss carryforward, not just the $225,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry for income tax expense. Noter Enter debitis before credits Date 20x9 General Journal Debit Credit

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