A1713Loss Ca rryback/Carryforward: A1713 Loss Ca rryback/Ca rryforwa rd: Nueve Ltd. had the following pretax earnings and losses: Year PreTax Earnings (Loss) Tax Rate 20X3 $ 330,000 34% 20x4 165,000 34 20X5 540,000 34 20X6 660,000 36 20X? (3,330,000) 36 20X8 375,000 36 20X9 9'. 5,000 40 The tax rates are those effective for the year indicated. The rates were enacted the year in which 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, managemen probable Nueve will utilize only $225,000 of the loss carryforward. 2. Prepare the entry to record income tax expense for 20X8 and 20X9. At the end of 20X8, m. estimates it is probable Nueve will utilize the entire loss carryforward, notjust the $225,001