In its first year of operations, 2018, Tartar Ltd. reports a taxable income of $70,000 and paid 30% in income taxes. It is now the end of 2019, and Tartar Ltd. has a loss of ($200,000) for tax purposes. Tartar's management believes it is likely the company will be able to use up its tax losses as sales are now increasing rapidly. The tax rate is currently 30% but rates are expected to decrease to 20% starting in 2020. The company is not short of cash but does wish to maximize profit in all years.

Prepare the required entries based on the above information.