Lu Ltd. has experienced the following accounting and taxable income: 20x4 20X5 20X6 20X7 Accounting Earnings $ (91, 000) 85,000 95,000 55,000 Taxable Income $(67,000) 52, 500 87,000 (93,000) Tax Rate 361 38 36 32 "Before applying any available tax loss carryforwards The differences between accounting and taxable income are caused by differences between accounting and tax expenses the not reverse (permanent differences). All tax rates are enacted in the year to which they relate. Required: 1. Record income tax for 20x4 through 20x7 assuming that the future use of tax loss carryforwards is not considered to be pre (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Required: 1. Record income tax for 20x4 through 20x7 assuming that the future use of tax loss carrytorwards is not considered to be probable (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list 1 Record the entry for income tax expense. 2 Record the entry for income tax expense. Record the entry for income tax expense (recovery), 3 4 Record the entry for income tax expense. Credit 5 Record the entry for income tax expense (recovery). 6 Record the entry for income tax expense recoverable. Noyt 2. Repeat requirement 1, assuming that the use of tax loss carryforwards is considered to be probable in the loss year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list EX > 1 Record the entry for recovery use of carryforward. 2 Record the entry for income tax expense. 3 Record the entry for use of loss of carryforward. 4 Record the entry for income tax expense Credit 5 Record the entry for use of loss carryforward. 6 Record the entry for income tax expense (benefit)