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Canadian Tax: Landmark Corp. started operations in 20X6. The statements of comprehensive income for the first four years of operations reflected the following pre-tax amounts
Canadian Tax:
Landmark Corp. started operations in 20X6. The statements of comprehensive income for the first four years of operations reflected the following pre-tax amounts 20X4 20X5 20X6 20X7 S126,000 $(305,000) $33,000 $53,000 Pre-tax earnings (loss) There are no temporary differences other than those created by income tax losses. Landmark has had a constant income tax rate of 40% for all four years Required: 1. Give the entries to record income tax expense for each year, assuming that management has assessed that use of the loss carryforwards is probable. (lf no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 4 Record the entry for income tax expense payable. Note: Enter debits before credits Date General Journal Debit Cre 20X4 2. Give the entries to record income tax expense for each year, assuming that management has assessed that use of the loss carryforwards is not probable. (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 payable Note: Enter debits before credits. Date General Journal Debit Credit 20X4 Record entry Clear entry View general journal 3. Give the 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 indic that probability of use was unlikely. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fleld.) View transaction list Journal entry worksheet 4 Record the entry for income tax expense. Note: Enter debits before credits. Date General Journal Deblt Credit 20X4 Record entry Clear entry View general journalStep by Step Solution
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