Required: Prepare journal entries to record tax for 20X7, 20X8, and 20X9. Assume that the loss carryforward usage in 20X8 is considered to be probable. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

(1) 20X7 - Record entry for current and deferred income tax expense payable (2) 20X8 - Record entry for current and deferred income tax benefit receivable (3) 20X9 - Record entry for current and deferred income tax expense payable (4) 20X9 - Record entry for current and deferred income tax benefit receivable.

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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

(1) 20X7 - Record entry for current and deferred income tax expense payable (2) 20X8 - Record entry for current and deferred income tax benefit receivable (3) 20X9 - Record entry for current and deferred income tax expense payable (4) 20X9 - Record entry for current and deferred income tax benefit receivable.

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On 1 January 20X7, Change Incorporated commenced business operations. At 31 December 20X9, the following information relates to Chang: Earnings (loss) before tax Tax rate (enacted in each year) Depreciation expense (asset cost was $720,000) Capital cost allowance Dividends received (nontaxable) Golf club dues 20x7 $332,400 30% 62,000 216,000 20x8 $(483,600) 35% 62,000 20x9 $ 780,000 40% 62,000 90,000 66,000 10,800 49,800 10,800 66,000 10,800 On 1 January 20X7, Change Incorporated commenced business operations. At 31 December 20X9, the following information relates to Chang: Earnings (loss) before tax Tax rate (enacted in each year) Depreciation expense (asset cost was $720,000) Capital cost allowance Dividends received (nontaxable) Golf club dues 20x7 $332,400 30% 62,000 216,000 20x8 $(483,600) 35% 62,000 20x9 $ 780,000 40% 62,000 90,000 66,000 10,800 49,800 10,800 66,000 10,800