Crandall Corp. was formed in 20X1. The company uses the comprehensive tax allocation method. Relevant information pertaining to 20X1, 20X2, and 20X3 is as follows:

*Pension amounts are tax deductible when paid, not when expensed. Over the long term, payments will equal total expense. The tax basis for the pension will always be zero. For accounting purposes, there will be a statement of financial position asset account asset called “deferred pension cost” for the difference between the amount paid and the expense, since the amount paid is higher.

Required:
Prepare the journal entry to record income tax expense for each year.

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Earnings before income tax Accounting income includes the following: Depreciation (assets have a cost of $120,000) Pension expense* Warranty expense Dividend income (nontaxable) 20X1 20X2 20X3 $100,000 $100,000 $100,000 10,000 5,000 3,000 2,000 10,000 7,000 3,000 2,000 12,000 10,000 3,000 3,000