Truan Corp. reports a deferred income tax asset loss carryforward on the SFP at 31 December 20X3 in the amount of $668,800. The asset reflects the benefit of a tax loss carryforward recorded in 20X2. It was not used in 20X3 when the enacted tax rate was 39%. In 20X4, the enacted tax rate changed to 41%. The use of the tax loss carryforward is considered probable in 20X4.

Required:
1. Record 20X4 tax entries if Truan Corp. reported:
a. Accounting and taxable income of $100,000 in 20X4
b. Accounting and tax losses of $440,000 in 20X4
2. Refer to your entries for requirement 1a. Would the taxes payable be different if ASPE were used and the taxes payable method was selected?
3. Refer to your entry for requirement 1b. What would happen in the future if management’s assessment changes such that they believe realization of the deferred tax asset is no longer probable?