Nueve Ltd. had the following pre-tax earnings and losses: Year 20X3 20X4 20X5 20X6 20X7 20X8 20X9 Pre-Tax Earnings (Loss) Tax Rate $ 330,000 34% 165,000 34 540,000 34 660,000 36 (3,330,000) 36 375,000 36 915,000 40 The tax rates are those effective for the year indicated. The rates were enacted the year in which they became effective. Taxable income (loss) was equal to accounting earnings (loss) in each year. Required: 1. Prepare the entry to record income tax expense for 20X7. At the end of 20X7, management estimates it is probable Nueve will utilize only $225,000 of the loss carryforward. 2. Prepare the entry to record income tax expense for 20X8 and 20X9. At the end of 20X8, management estimates it is probable Nueve will utilize the entire loss carryforward, not just the $225,000.