Question # $2$

Saturn Ltd$.$ began operations in $20$X$3.$ For the first six years of operations, the company had the following pre$-$tax net earnings $($loss$)$:

$$

Year

Taxable Income

$$

Tax Rate

$20$X$3$

$

$(200,000$

$)$

$$

$$

$25$

$\%$

$20$X$4$

$$

$1,200,000$

$$

$$

$$

$30$

$\%$

$20$X$5$

$$

$1,460,000$

$$

$$

$$

$30$

$\%$

$20$X$6$

$$

$(4,320,000$

$)$

$$

$$

$30$

$\%$

$20$X$7$

$$

$460,000$

$$

$$

$$

$35$

$\%$

$20$X$8$

$$

$1,000,000$

$$

$$

$$

$35$

$\%$

Shape

There have been no temporary differences between pre$-$tax accounting income and taxable income. In all years, the probability of loss carryforward use was low.

Required:

For each year, prepare a journal entry or entries to record income tax expense $($recovery$).($If no entry is required for a particular transaction, select $"$No journal entry required" in the first account field.$)$