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 38% for all four years.

Required:
1. Give entries to record income tax expense for each year, assuming that management has assessed that use of the loss carryforwards is probable.
2. Give entries to record income tax expense for each year, assuming that management has assessed that use of the loss carryforwards is not probable.
3. Give entries to record income tax expense for each year, assuming that management has assessed that use of the loss carryforwards is probable, but reassessment in 20X6 indicated that probability of use was unlikely.

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Pre-tax earnings (loss) 20X4 $100,000 20X5 $(240,000) 20X6 $20,000 20X7 $40,000