KAR Ltd$.$ has been in business for five years and incurs a loss of $$320,000$ in $20$x$15.$ The company has no temporary differences. The history of the company's earnings since they began operations is as follows: $(5$ marks$)$

Year

Taxable Income $($loss$)$

Taxes paid $($recovered$)$

$20$x$11$

$$30,000$

$$12,000$

$20$x$12$

$($$$15,000)$

$(6,000)$

$20$x$13$

$$130,000$

$52,000$

$20$x$14$

$$30,000$

$12,000$

The tax rate has been constant at $40\%.$

Required:

Prepare journal entries to record the recovery of taxes and any journal entries necessary for any loss carry forwards. Assume probability of recovery is less than $50\%$