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pls answer question 1 and 2 Lu Ltd. has experienced the following accounting and taxable income: *Before applying any available tax loss carryforwards The differences
pls answer question 1 and 2
Lu Ltd. has experienced the following accounting and taxable income: *Before applying any available tax loss carryforwards The differences between accounting and taxable income are caused by differences between accounting and tax expenses that will not reverse (permanent differences). All tax rates are enacted in the year to which they relate. Required: 1. Record income tax for 204 through 207 assuming that the future use of tax loss carryforwards 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.) 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.) \begin{tabular}{|l|l|} \hline & \\ \hline 1 & Record the entry for recovery use of carryforward. \\ \hline 2 & Record the entry for income tax expense. \\ \hline 3 & Record the entry for use of loss of carryforward. \\ \hline 4 & Record the entry for income tax expense. \\ \hline 5 & Record the entry for use of loss carryforward. \\ \hline 6 & Record the entry for income tax expense (benefit). \\ \hline \end{tabular}Step by Step Solution
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