Problem $1-13$ marks $($suggested time: $30$ minutes$)$

Lochness Inc. began operation on January, $2020.$ The company had the following information

pertaining the fiscal years ended December $31,2020$ to $2023$:

The $2020$ and $2021$ tax rate was $29\%.$ The $2022$ and $2023$ tax rate was $33\%.$ Tax rates were

enacted in the year to which they pertain.

The only temporary difference relates to equipment, which the company purchased in $2022.$

There were no permanent differences in any of the years.

Required:

Prepare the tax journal entries for each of the years $2021$ to $2023,$ assuming that it is probable

that the loss carryforward benefit would be realized. Please provide one combined journal entry

for each of the years. Use "Deferred income tax asset $-$ LCF$"$ to denote the deferred tax asset

related to loss carryforwards. $(13$ marks$)$

SHOW ALL YOUR WORK in EXCEL and clearly label all components.