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Landmark Corp. started operations in 206. The statements of comprehensive income for the first four years of operations reflected the following pre-tax amounts: There are
Landmark Corp. started operations in 206. The statements of comprehensive income for the first four years of operations reflected the following pre-tax amounts: There are no temporary differences other than those created by income tax losses. Landmark has had a constant income tax rate of 35% 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1 Record the entry for income tax expense payable. 2 Record the entry for income tax recoverable and deferred income tax asset for unrecovered losses. 3 Record the entry for income tax recoverable from deferred income tax asset. 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.) \begin{tabular}{|l} \hline Record the entry for income tax expense payable. \\ \hline 2 Record the entry for income tax recoverable. \\ \hline 3 Record the entry for income tax expense. \\ \hline 4 Record the entry for income tax expense. \\ \hline Note : = journal entry has been entered \\ \hline \end{tabular} 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 206 indicated that probability of use was unlikely. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Landmark Corp. started operations in 20X6. The statements of comprehensive income for the first four years of operations reflected the following pre-tax amounts: There are no temporary differences other than those created by income tax losses. Landmark has had a constant income tax rate of 35% 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 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.) 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 206 indicated that probability of use was unlikely. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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