Question 7 (12 marks) JG Ltd. has been in business for five years and incurs a loss of $520,000 in 20x15. The company has no temporary differences. The history of the company's earnings since they began operations is as follows: Year 20x11 20x12 20x13 20x14 Taxable Taxes paid Income (recovered) (loss) $300,000 $114,000 -$150,000 -57,000 $330,000 125,400 $80,000 30,400 The tax rate has been constant at 38%. Required: 1. Prepare journal entries to record the recovery of taxes and any journal entries necessary for any loss carry forwards. Assume probability of recovery is greater than 50% 2. Prepare journal entries to record the recovery of taxes and any journal entries necessary for any loss carry forwards. Assume probability of recovery is less than 50%