On 1 January 20X7, Change Incorporated commenced business operations. At 31 December 20X9, the following information relates to Chang:

	20X7			20X8			20X9
Earnings (loss) before tax	$	329,900		$	(481,100	)	$	775,000
Tax rate (enacted in each year)		30	%		35	%		40	%
Depreciation expense (asset cost was $710,000)		61,000			61,000			61,000
Capital cost allowance		213,000			0			89,000
Dividends received (nontaxable)		40,600			65,500			65,500
Golf club dues		10,700			10,700			10,700

Required: 1. Prepare journal entries to record tax for 20X7, 20X8, and 20X9. Assume that the loss carryforward usage in 20X8 is considered to be probable.

2. Prepare journal entries to record tax for 20X7, 20X8, and 20X9. Assume that the loss carryforward usage in 20X8 is not considered to be probable but is considered to be probable in 20X9.